Let market forces rule
The public does not to agree with the opinion of property developers that the government should step in to help the market, says an article on the website www.rednet.cn. The following is an excerpt:
Some real estate developers recently said on TV that the government cannot sit back and watch the fall of housing prices under the current economic conditions. Instead, they believed the government should shore up the property market by protecting macroeconomic safety and guarding against banking risks.
Their views were at odds with those revealed by a recent survey conducted in four major cities - Guangzhou, Shenzhen, Beijing and Shanghai. Almost 60 percent of respondents said they do not believe the government should prop up the property market and 38 percent said that housing prices had yet to fall to a rational level, and the government should strengthen regulations.
In spite of the public's opposition, the property developers seem not to be alone. In recent months, they have made use of experts and the media to support their opinions. They have also taken advantage of the fact that banks and local governments do not want to desert them because of their contributions.
The economist Ren Yuling recently said that the current situation in the property market was caused by inflation and it was high time to strengthen regulations.
(China Daily 12/19/2008 page8)
