China Cracks Down on Real Estate Industry So That Families Can Afford Housing | Beaufort County Now | The Chinese Communist Party is regulating the nation’s real estate sector to ensure that families can afford housing.

Coronavirus Disease 2019 (COVID-19)
Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    The Chinese Communist Party is regulating the nation's real estate sector to ensure that families can afford housing.

    The move comes days after the Chinese government unveiled new regulations for the nation's $120 billion private tutoring industry, which authorities believe will decrease costs for families. Chinese parents routinely seek tutoring services throughout children's primary and secondary education — by some estimates, between $17,400 and $43,500 per year — to prepare them for the National College Entrance Examination, which determines eligibility for undergraduate education.

    As with the crackdown on tutoring, the real estate sanctions are an attempt to cut costs for families, who are now permitted to have up to three children — an increase from the previous two-child policy, which formerly ended the decades-long one-child policy.

    Al Jazeera reports:

  • In recent days, China jacked up mortgage rates in a major city, vowed to accelerate the development of government subsidized rental housing, and moved to increase scrutiny on everything from financing of developers and newly-listed home prices to title transfers. Echoing Xi Jinping's famous words that "housing is for living in and not for speculation," Vice Premier Han Zheng added that the sector shouldn't be used as a short-term tool to stimulate the economy.
  • While China has spent years trying to cool property prices, analysts say this round of crackdowns will be different. One clear signal came in Vice Premier Han's comments on steering away from using real estate to provide short-term boosts for the economy.
  • Another signal came from the unusually large number of government entities that vowed recently to strengthen measures on everything from project development and home sales, to rental and property management services. Eight policy bodies said in a joint statement that they would step up penalties for misconduct. In the line of fire will be developers that default on debt repayments, delay deliveries on pre-sold homes or elicit negative news or market concerns.

    "China's property sector has been one of the biggest sources of discontent and the government is hell-bent on controlling prices so it doesn't lead to social unrest," Liao Ming of Prospect Avenue Capital told Al Jazeera. "The measures echo the policy curbs in education in that they are aimed at easing public angst against inequity."

    The housing regulations caused stock indices for the sector to plummet. The CSI 300 Real Estate Index dropped by over 6% on Monday — its lowest level since 2015. The Hang Seng Property Index also fell by more than 3%.
Go Back


Latest Op-Ed & Politics

The New York Times was forced to issue multiple, major corrections for an article published on Wednesday that falsely claimed 900,000 children had been hospitalized for COVID-19 since the start of the pandemic.
As a youth growing up in a United States of America that understood the pain of sacrifice, the remembrance of Pearl Harbor was an annual event.
If data from September regarding women and the economy becomes a trend, Joe Biden and the Democrats may have even more trouble in 2022 in the midterm elections.
With an ever-expanding federal government, the U.S. has fallen out of the top five countries for economic freedom, according to a new report from the Fraser Institute.
Fauci ‘sabotaged early treatment'


A city’s supposed attempt to make faces on a mural not “specifically identifiable” ended up depicting a black firefighter as white, and now she’s suing for defamation and negligence.
Many North Carolinians breathed a sigh of relief last week when the GOP-led legislature and Democratic Gov. Roy Cooper came to terms on a budget for the new biennium.
The North Carolina Court of Appeals on Monday morning issued an order temporarily suspending candidate filing for all U.S House of Representatives, N.C. Senate, and N.C. House contests.
Given the enormity of the public and private investment in US higher education, of course we should evaluate its effectiveness. But, how?
Ana Kasparian, a cohost of the popular progressive online news show “The Young Turks,” offered a strong defense of her debate with Daily Wire editor emeritus Ben Shapiro this week, calling out the Left for “platform scolding.”
Having trouble getting a hair appointment or other services? There are three bills sitting in the Senate Rules Committee that sponsors say would loosen bureaucratic red tape for some small service businesses.


Back to Top