Local govts now entrusted with task of controlling house prices

THE MINISTRY OF HOUSING and Urban-Rural Development, Ministry of Land and Resources and People's Bank of China jointly convened a meeting in Wuhan, capital of Hubei province, with the governments of some provincial-level regions to discuss macro-control of the real estate market. Beijing Youth Daily comments:

The two ministries and the PBOC, China's central bank, which are all directly related to the real estate market, instructed the local governments to fulfill their responsibilities and reduce potential risks related to the real estate sector, and urged the local authorities to press ahead with macro-control measures and policies.

The meeting, though not hosted by the State Council, China's Cabinet, is important because it highlights, for the first time, the local governments have a duty to control any risks arising in local real estate markets. The provincial and city governments are better placed than the central government to manage their local housing markets, because their policies and measures are more responsive, timely and to-the-point.