Hong Kong economist Larry Hsien Ping Lang who has been applauded for housing policy claimed that only the "Chongqing mode" can save China's real estate market.
On the 2010 China Economy and Property Summit Forum held by sina.com in Beijing, Lang analyzed the problems of China's real estate market, a hot topic for the government and public alike. He likened the market to a volcano crater covered by stones, which may erupt at any time. Lang stated that government's policies could not reduce the price of housing and only the "Chongqing mode" which vigorously promoted indemnificatory housing and encouraged migrant workers to come to the city, is the only hope for the property market.
The "Chongqing mode" has won much support and Lang further explained that it would gradually stabilize the real estate market which would bring a booming stock market.
He believed the "trilogy" of the mode circularly solved housing problems and would be beneficial to gradually eliminate the property bubble. The three parts are as follows:
First, 40 million square meters public rental housing will be built in three years, which will provide living places for one to two million residents. Second, three million farmers will be granted with Chongqing hukou from next year, which means they have to give up their homestead. Therefore, these lands can be farmlands again or used to build more public rental housing. Third, the development of IT industry clusters will be strengthened. Branded enterprises like HP and Cisco have located to Chongqing and 80 percent of their hardware is produced locally, solving the employment problem of three million farmers.