New policies might stimulate, as well as stabilize, realty market

On Monday, 15 minutes before the end of the working day, the People's Bank of China and the Ministry of Housing and Urban-Rural Development jointly issued a document that includes favorable tax policies for realty sales and lower down payment requirements for mortgages. Comments:

Many worry that the new policies might change expectations about the realty market, thus creating bubbles again. That worry is unnecessary because currency liquidity, which is the basis of bubbles, is still non-existent thanks to conservative monetary policies. Realty prices will probably remain stable.

Beijing Times, March 31