Local governments should aim to keep their housing markets stable

THE MINISTRY OF HOUSING AND URBAN-RURAL DEVELOPMENT has urged the local governments of some cities where the realty markets are overheated to strengthen their real estate regulations to eliminate all possible room for speculation. People's Daily comments:

Following the ministry's call, the local governments of cities where housing transactions have heated up have introduced tougher measures to plug any policy loopholes that speculators have been taking advantage of, and all State-owned commercial banks have raised their interest rates for mortgages.

Local governments should not underestimate hot money's ability to move quickly. Were it not for the central authorities' preemptive and tight control, speculators would have targeted the real estate markets in Xiongan New Area and the Hainan Island, where China will build the world's largest free trade zone.