As house prices rise, 'wild' theories thrive

Despite growing public resentment, the frothy Chinese real estate market has never been short of heavyweight academic supporters who often pass controversial remarks that touch the nation's nerves.

Recently, a professor of business from the prestigious Peking University openly defended high housing prices in Chinese cities, because he reckoned more taxes from the sales of luxury houses could be used to subsidize public housing projects.

Poor people should never unrealistically expect to buy homes or our cities will become shantytowns, he told the media on the sidelines of a forum on high-end properties early this month. Instead, the luxury houses should be allowed to be sold for record prices so that the government can get money to build welfare housing for the less fortunate, he said.