Xinhua News Agency issued five comments in succession to approve land financial corruption to push up housing prices.
From March 28 to April 1, Xinhua published the Xinhua current Review for five consecutive days, pointing the finger at local governments and criticizing the root causes of the current real estate market-land finance and high land prices caused by corruption.
After a four-day rebuke, a Xinhua review entitled "how long can 'Land Finance' last?" published on the 1st, pointed out that "to solve the problem of 'land finance', the most urgent task is to weaken the impulse of local governments to 'make money from land' in terms of institutional arrangements." How to contain the impulse? The article suggests, "give more financial support to local governments."
At present, most market participants firmly believe that it is difficult for local governments to "generate money from land" without increasing the dominant power of local finance. Property tax is regarded as a natural choice to increase local government revenue.
Summary of the views of ■ 's "Xinhua Review"
April 1, "how long can the" land finance "last": with only the slogan of "running the city", huge profits can be made through "land collection and storage" and high-price auctions. What's more, real estate development can be effective in that year, and its "contribution" to GDP is significant. In this case, how can we hope that the local government will take the initiative to control house prices?
March 31, "crazy housing prices challenge land auction": from an economic point of view, the existing land auction belongs to supply monopoly and demand competition. This mode of coexistence of supply monopoly and demand competition will inevitably lead to vicious competition on the demand side and lead to skyrocketing land prices.
March 30 "resolutely eliminate the" corruption cost "in house prices: what the real estate industry needs to disclose is not only the development cost, but also all the examination and approval links involved in the development process should be made public thoroughly. Squeeze the space of corruption in an all-round way
On March 29, "the property market should not be allowed to become a paradise for speculators": local governments must change their thinking and stop indulging in the "popularity" and "wealth" brought about by real estate speculation.
March 28, "worry about the property market under the booming scene": the overdraft of the future land sales finance determines that the real estate market is not sustainable, but also means that it is difficult to rely on this way to promote economic development. According to Xinhua News Agency Oriental Morning Post
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