HONG KONG, June 27, 2018 - (ACN Newswire) - According to South China Morning Post, China's national policies place great emphasis on the real estate industry and the real estate market in the country is subject to various governmental regulations. By enacting laws and regulations and implementing industry policies and other economic measures, the Chinese government has exercised significant direct and indirect influence on the development of China's property industry. Over the past few years, in order to curb the overheated property market, the Chinese government has rolled out a number of restrictive measures to stabilize the property prices. However, as the Central Economic Work Conference was convened in late 2017, the property regulatory policies that have been implemented for over a year seem to see some relaxation.
At the Central Economic Work Conference held in late 2017, the CCP highlighted key economic tasks for 2018. On one hand, the MOHURD stressed the implementation of differentiated regulatory policies to support people's needs for the first home and other reasonable demands, but on the other hand it expressly stated to continue the effort in reducing the inventory in the third-tier and fourth-tier cities with excessive supply. Meanwhile, in some second-tier cities, the new talent policy has relaxed the home purchase and settlement requirements for talents. The relaxation of policies has helped satisfy the industry demand in 2018, compounded by the facilitation of inventory reduction in some third-tier and fourth-tier cities. Therefore, the fluctuation in the property market is less prominent.
In fact, since December 2017, a number of second-tier cities such as Zhengzhou, Wuhan and Hefei have successively eased the restrictive policy for home purchase. In early 2018, Nanjing and Lanzhou also did the same by revising the regional restrictive policy for home purchase. Meanwhile, the state government aimed to promote the Yangtze River Delta city cluster to become the largest city cluster of the world by 2030, with favorable government policies, including the establishment of the China (Shanghai) Pilot Free Trade Zone to promote investment in the Yangtze River Delta city cluster. This implies that the property regulatory policies that have been tightened for over a year have seen some relaxation. It is expected that there will be more second-tier and third-tier cities cancelling the restrictive policy. China's property policy is seeing subtle changes.
The central government is more tolerant of the economic slowdown. It is believed that the short-term regulatory policies will not be too loose, which will be favorable for the launch of a long-term mechanism. While implementing the regulatory policies, the focus of the guiding principle will be gradually shifted from "inventory reduction" to improvement of supply-demand transition. It is believed that the continuous reform will encourage a healthier development of China's property market. In the long run, given that the property regulatory policies are loosened, China's property market will have greater development momentum and investment value.
In the long run, given that the property regulatory policies are loosened, China's property market will have greater development momentum and investment value. Zhenro Properties is the first property developer in China listed in Hong Kong this year. Since its listing, its share price and results have delivered a creditable performance. According to the publicly available information of the Hong Kong Stock Exchange, Redsun Properties Group Limited has the potential to become the second property development company in China to be listed in Hong Kong.
Topic: Press release summary
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
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