Friction is rising over Beijing’s real estate policies, with some senior Chinese policy advisers arguing that restrictions should be loosened to avoid an abrupt economic slowdown.
In a commentary published yesterday, an adviser to China’s central bank recommended an adjustment of existing policies to boost the number of housing transactions and provide a “soft landing” for the property sector.
“If tightening is too fast and too abrupt it will have an overwhelming impact on overall economic growth,” Li Daokui wrote in New Fortune magazine. “If housing prices drop drastically it would place an enormous burden on the sentiment of many middle-income households.”
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