Wednesday, January 5, 2011

How confident the Prime Minister to force all departments

 New Year approaching, the State Council Premier Wen Jiabao of China into the Central People's Radio Voice of the studio, direct interaction with the audience. In talking about housing issues, Wen said in his term of office, must make the prices can be maintained in a reasonable level and will never back down, and that increase the protection of housing construction and curb speculation are the two key.
be satisfactory, prices remain high, housing construction vice minister had earlier said the author, urbanization, narrow the field of private capital investment, hot money inflows, so that price regulation is indeed difficult.
is difficult facts, but not the reason. high prices not only detrimental to long-term development of China's economy, while not conducive to the stability of people's livelihood. This year is difficult to price, not the policy is not to force, but the sector is not to force. Wen Jiabao said , The started task is 10 million sets, such a large amount of non-completion of the discount can be as important variables about the future price.
statement given in accordance with the industry to protect the housing construction cycle of about 2 -3 years, that is, the protection in 2010 launched a large-scale housing, the earliest formation of market supply in 2012, and 1000 million units in 2011 may protect the housing market in 2013. the moment of the protection of housing construction and more number is used to sign to make not only a momentary assessment tasks, but linked with the performance of officials. Where did the money out, how will the supply, only the refinement of these areas, set rules to protect the house can really become a price stabilizer, for example, the next few years will be 10 million units without the protection of housing construction into account and a corresponding expansion of the total land supply, there will be such a case: Land first supply of land for protection of housing construction, but because no significant increase in total supply, leading real estate less than normal supply of land for construction, but led to shortage of commercial land use, housing prices down to very great difficulty.
construction of affordable housing is a long-term policy, while monetary tightening may be a priority, on Saturday, the central bank accidentally impact on the property market is indeed limited. For the price, raising the deposit reserve rate is equivalent to But prices also have a direct effect. housing prices, and other commodity prices is the same reason, that is, a lot of money flooded in, are too much money chasing too few goods due. So, you want to prices down, just take the money back to the market too much, otherwise, control will inevitably become , the relevant departments only to increase land supply, strongly promote the protection of housing construction, and supported by interest rates and other monetary policy, housing prices can be most effective in order for the Prime Minister's confidence in the real estate market clank sounds. 

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