Realty sector won't be used to boost growth

The recent meeting of the Political Bureau of the Communist Party of China Central Committee, which focused on China's economic work in the latter half of the year, reiterated that houses are for living in, not for speculation, and emphasized continued efforts are required to build a long-term mechanism for the real estate sector.

The meeting advanced for the first time that investment in the real estate market should not be used as a short-term stimulus to boost the economy. Which shows the central government has a clear understanding of the current situation of the real estate sector, and is committed to transforming the economy from one driven by fast-paced growth to innovation - driven high-quality sustainable development.

The overheating of the real estate sector resulted in an unbalanced economic structure, which is a big obstacle to China's economic transition to high-quality development. In recent years, China's economy has increasingly relied on the real estate sector, and more and more banks have given loans to realty companies and property developers. By the end of last year, the loan balance of the real estate sector was 38.7 trillion yuan ($5.51 trillion), up 20 percent year-on-year.