Making housing healthy for common prosperity

According to the guideline, in order to achieve market order, violations of laws and regulations will be effectively curbed; regulations and a mechanism for monitoring the housing sector will be consistently improved; and an oversight information system will be established.

The country has been relentlessly stressing its stance on seeking a stable and healthy property market based on the establishment of a long-term mechanism.

The latest statement of this kind was made at a meeting of the Political Bureau of the Communist Party of China Central Committee on July 30, which stressed sticking to the principle of "houses are for living in, not for speculation", stabilizing the prices of lands and homes and market expectations to promote the stable and sound development of the real estate market, as well as accelerating the development of rental housing.

The reason for such pursuit is that the real estate sector matters to people's lives in various aspects.

A stable property market is important for the nation's dual-circulation development pattern, in which domestic and foreign markets complement each other, said Chen, who added that only if home prices are stable will people spend on consumption without any concerns.

The China Banking and Insurance Regulatory Commission's decision to prevent banking and insurance capital from irregularly flowing into the property sector is another reflection of the significance of the industry.

Restrictions on hot money flowing into the real estate industry will lead to more investments in the real economy, the part of a country's economy that produces goods and services, and will therefore promote the development of industries thirsty for investment, experts said.

Chen also linked property to China's population policy. At the end of May, China relaxed its family planning policy by allowing all married couples to have up to three children, in the hope of dealing with the challenge of population aging and improving the country's demographic structure.

"As a Chinese saying goes, 'After living in peace, people can work happily.' In my opinion, only when people's living problem is solved would they comfortably take bearing the next generation into consideration," Chen said.

The recent regulatory policies showed that the Chinese government is serious and eager about stabilizing the property market at the beginning of the 14th Five-Year Plan period, experts said. And it is capable of achieving its goal.

Hui said it is worth mentioning that all the tightening measures coming from various levels abide by an important principle that the market would always play a key role in the allocation of resources. "In other words, the regulations are announced to make sure the property market operates in an orderly way."