Property tycoon doubts real estate measures

One of China's leading property tycoons, Ren Zhiqiang, the chairman of Hua Yuan Real Estate Group, has questioned the consistency of China's latest market regulations and whether they will be able to rein in the country's skyrocketing house prices.

Attending the Boao Forum for Asia, Ren said the measures had failed to keep China's property price at a reasonable level while hurting the market's autonomy.

"The property control policies have gone wrong from day one," said Ren.

"A series of policies, including the bidding system for land acquisition, the housing credit policy and the public finance system, have actually helped push up China's property prices, instead of cooling them."

He said China's latest moves to curb the property market meant the central government had left the responsibility to local governments.

"The government's message is: 'We hope prices won't continue rising; you (local governments) go and fix them; and if you don't fix them, we will punish you'," the outspoken businessman said.

Ren added that unless the government boosts the supply of land for new homes, China's property prices will not stop rising this year.

He said there was no increase in land supply last year from 2011, and some major cities had only completed 30 percent of their mandated quota, and this shortage in supply had pushed up prices.

"It is as simple as this: How can you rein in meat prices by merely killing more pigs while not boosting the number of pigs?" he said.