New Real Estate Control Measures

A new policy package aimed at tightening the real estate market was unveiled late September 29, one day before a weeklong national holiday began in China. The release was intended as an answer to a recent increase in housing prices nationwide and as a preemptive attack against a possible buying frenzy during the holiday period.

Will the move curb sales during the coming week? Probably yes. But it will do little to cure China's ailing housing industry. And, ironically, the stock market reacted to the news by pushing up prices of real estate company stock.