With the Chinese economy showing more signs of stabilizing, in the end of the third quarter the real estate policy will be tighten up with the rising housing prices curbed to a certain extent. We believe that the property market regulation will continue to play a certain effect in the short term, but the Chinese property market prevailed with debt and leverage should not cause systemic risk; long-term mitigation risk policy should be studied and planned. The real estate market regulation should be multi-pronged, and comprehensive policy should be implemented. First of all, in terms of monetary policy, the interest rate can be considered a tool to increase the transaction costs of speculative buyers. Secondly, the government can provide targeted low-cost housing and housing security for the poor to rent. Thirdly, impose different treatments in loan policy of the hotspot cities and third or fourth-tier cities. Fourthly, land finance alternatives should be sought. Fifthly, there should be an increase in the effective supply of land.
