BEIJING - Cabinet officials are touring China to compel defiant local leaders
to rein in out-of-control real estate development, state media said Friday.
Chinese leaders are trying to cool off a construction boom that they say
could spark a financial crisis. But they say local leaders are failing to
enforce building curbs and sometimes initiate their own projects.
Officials visited the major cities of Beijing, Shanghai, and Tianjin and
other areas in nine provinces to order local authorities to comply with the
controls, the official Xinhua News Agency said.
Yun Xiaosu, a deputy minister of land, told officials in the central city of
Nanjing that "local governments should not defy orders given by the central
government" that area meant to stabilize the market and guarantee a supply of
reasonably priced housing, Xinhua said.
Yun also reminded the local leaders to enforce rules meant to ensure a supply
of lower-income housing by mandating that apartments bigger than 90 square
meters (970 sq. feet) can make up no more than 70 percent of new developments,
the agency reported.
The report came after Shanghai's Communist Party secretary, Chen Liangyu, was
dismissed Monday in a scandal over the possible misuse of city pension funds to
finance real estate projects.
Also Friday, a Hong Kong magazine said some 300 auditors in Beijing were
looking into possible corruption cases in the Chinese capital - more than
the 200 auditors sent to investigate the Shanghai case.
One case involved the sale of a large tract near Chaoyang Park near downtown
for just 210 million yuan (US$26 million; euro20 million), a price well below
its market value, said the magazine, Asia Week, which didn't cite any source for
the information.
Phone calls on Friday to the Beijing office of the Ministry of Supervision,
which reportedly was carrying out the investigation, weren't answered.
The central government has raised interest rates twice this year, imposed
curbs on new construction and banned some projects such as luxury villas
outright in an effort to cool off the building boom.
Officials involved in visiting local areas this week came from the Ministries
of Construction and Land and Resources, as well as China's top planning agency,
the Cabinet's National Development and Reform Commission, Xinhua said.
They visited Liaoning, Inner Mongolia, Jiangsu, Jiangxi, Shandong, Hubei,
Guangdong, Sichuan and Shaanxi.
A Ministry of Construction team arrived earlier this week in Shanghai to
investigate real estate projects there, according to earlier reports by Xinhua.
In August, the central government publicly reprimanded leaders of the
northern region of Inner Mongolia this week for building an unauthorized power
plant. The punishment was widely publicized in the state press in a warning to
other local leaders.