China's real estate bubble began to lose heart after house prices soaring up over the years. Housing prices started to decline in some major cities. Facing such situation, people can not help asking that "whether there is a problem of excessive lending in China's economy; will China's real estate bubble burst or not in recent years; and if burst, how it will affect other countries?" The following video will be a good explanation for these questions.
http://video.allthingsd.com/video/china-risks-property-bubble-burst/4797F073-AF8D-4371-87F9-E86C055FA490
2012-03-03
How to prevent the real estate bubbles?
Government to carry out a full range of monitoring the macroeconomic situation, the development of appropriate policies, the primary measure to prevent the real estate bubble. The real estate both the dual nature of the assets and consumer goods, precisely because of such investment in the real estate market is very active and prone to the real estate bubble, we must strengthen the management of the real estate market.
Establish a unified national real estate market early warning and forecasting system to strengthen and improve macro-control system should be adopted on the national real estate market information, timely collection, collation and analysis of market situation to make the assessment and prediction, regularly published market analysis report, a reasonable guide the market to make the General Staff, the government's macro decision-making. The state should speed up the establishment and improvement of real estate macro control system, the necessary intervention and regulation of land supply, taxes and improve the pre-sale management and other means, to effectively prevent the generation of real estate "bubble".
To strengthen the management of land resources -- the government should adjust the supply of land resources, to control the real estate unreasonable price increases. Is necessary to check the blind development of high-end residential and large-scale construction, to prevent the emergence of new backlog, caused by the structural surplus bubble. To clean up the land market, and resolutely crack down on developers enclosure and scrambled to act, to prevent unhealthy practices in the field of land leased from the source and corruption.
Strengthen financial supervision, a reasonable guide capital flows. Funds to promote the real estate bubble, the vast majority of outflow from the bank. Therefore, to strengthen banking supervision and control of speculative capital from the source.
Establish a unified national real estate market early warning and forecasting system to strengthen and improve macro-control system should be adopted on the national real estate market information, timely collection, collation and analysis of market situation to make the assessment and prediction, regularly published market analysis report, a reasonable guide the market to make the General Staff, the government's macro decision-making. The state should speed up the establishment and improvement of real estate macro control system, the necessary intervention and regulation of land supply, taxes and improve the pre-sale management and other means, to effectively prevent the generation of real estate "bubble".
To strengthen the management of land resources -- the government should adjust the supply of land resources, to control the real estate unreasonable price increases. Is necessary to check the blind development of high-end residential and large-scale construction, to prevent the emergence of new backlog, caused by the structural surplus bubble. To clean up the land market, and resolutely crack down on developers enclosure and scrambled to act, to prevent unhealthy practices in the field of land leased from the source and corruption.
Strengthen financial supervision, a reasonable guide capital flows. Funds to promote the real estate bubble, the vast majority of outflow from the bank. Therefore, to strengthen banking supervision and control of speculative capital from the source.

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