People's Daily Overseas Edition: "policy-making in accordance with the city" is by no means "relaxation in accordance with the city" China will not rely on real estate speculation to boost the economy

Shanghai Securities News China Securities Network, according to the People's Daily Overseas Edition on May 24, analysts pointed out that China's development is still in an important strategic opportunity period, the Chinese economy has enough toughness, huge potential and continue to burst of innovation and vitality. In the face of external uncertainties, China will take the five new development concepts of "innovation, coordination, green, openness and **** enjoyment" as its guide, push forward the supply-side structural reform, pursue higher-quality development, and ask for dividends from reforms, potentials from openness, and impetus from innovation. Therefore, China will firmly adhere to the position that "houses are for living, not for speculation" to ensure that the real estate market is on the right track.

Zhang Bo, chief analyst of the 58 Anju Rooms Property Research Institute, said that since this year, with the city-specific policies and the introduction of talent policies around the country, individual cities are affected by the policy to loosen the expected impact of the real estate market has warmed up significantly. In this context, the Ministry of Housing and Construction in one month twice issued a warning reminder has a very obvious "knock" meaning, at the same time reflects the stable land prices, stable house prices and stable expectations of the regulatory determination. This also indicates to some extent that the "city-specific policy" is by no means "relaxation of the city".

External shocks brought about by the "stable growth" pressure, as some institutions say to pull up the real estate market to resolve it? From the relevant departments recently intensively issued a "stable property market" signal, it is not difficult to find the answer.

The Ministry of Natural Resources requires that the supply of residential land be maintained at a stable level, guiding market expectations and promoting the stable and healthy development of the real estate land market. Among them, commercial housing inventory digestion cycle of 12-6 months to increase land supply. Meanwhile, the Ministry of Natural Resources' Guidelines for Implementing Industrial Land Use Policies (2019 Edition) also made it clear that it is necessary to y promote the conservation and intensification of land use, and release more land space by transforming the land use mode and improving the efficiency of land use, so as to guarantee the development of new industries and new business types and the demand for the construction of people's livelihood and service facilities.

Earlier, the People's Bank of China's "China's Monetary Policy Implementation Report for the First Quarter of 2019" also pointed out that the next stage of monetary policy should focus on stabilizing demand with the approach of supply-side structural reform, adhere to structural deleveraging, prevent and defuse risks in the promotion of high-quality development, and resolutely fight the three major battles.

"Inflated housing prices, high vacancy rates, and high speculative components will directly squeeze residents' other consumption and raise the cost of social financing. From the point of view of practice around the world, counting on real estate to boost the economy is basically not sustainable." Cong Yi, a professor at the School of Economics at Tianjin University of Finance and Economics, said China is accelerating the transformation of old and new kinetic energy. In the first quarter, the value-added of the medical instrumentation and instrumentation manufacturing industry and the electronic and communication equipment manufacturing industry grew by 14% and 9.4% year-on-year, respectively, with a growth rate significantly faster than that of industries above designated size; the mobile communication base station equipment, urban rail vehicles, and new energy automobiles grew by 153.7%, 54.1%, and 48.2% year-on-year, respectively. The driving force of new industries and new business forms is stronger. In the future, China will still focus on practicing internal skills, transformation and upgrading, rather than stimulating real estate to hedge against external risks.