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CHINA> National
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Premier Wen talks online with public
(Xinhua)
Updated: 2009-02-28 10:59 Premier hopes for stable, healthy real estate sector Chinese Premier Wen Jiabao said here Saturday he hopes to see a stable and healthy development of the country's real estate sector in the face of the global financial crisis.
China should strengthen management and regulation to keep housing prices and the scale of property construction "at a reasonable level", said Wen during the online chat. Housing prices have long been under fire in China, as consumers complain houses in large cities are too expensive to afford, giving developers unfair huge profits. Wen said the government highly values the property industry as it concerns the life of ordinary people and directly affects the national economy. The government has urged for stronger confidence in the real estate market while pledging more money and energy on meeting the needs of low-income families, he said. The government fund must be used properly to ensure house buildings are economical, safe and of good quality, said Wen. He also noted the construction should save land and suit people's needs. "Auditing and supervision should go along with all property projects," said Wen. "Problems must be dealt with whenever they emerge." The property prices in 70 major Chinese cities fell 0.9 percent in January from a year earlier, a faster fall than the previous month. In December, the figure saw the first year-on-year drop since the government started to release it in 2005. Analysts attributed the slump to slack home buying due to grim economic situation and future uncertainties. The Chinese government announced a stimulus package for the ailing property industry in December, giving favorable tax policies and loan terms on home sellers and buyers while emphasizing low-income housing.
The global financial crisis has not bottomed out yet and its impact is still spreading, said Premier Wen during the online chat. The major influence of the crisis on China is on the country's real economy instead of financial sectors, he said. "We must strengthen confidence in the face of the crisis and be ready to take firmer and stronger actions whenever necessary," he told netizens. China's stimulus measures have shown initial effects and produced good results in certain areas and fields, said Wen. "Some key indicators showed the economic situation has somewhat turned better," he said. "But those were just temporary indices and couldn't be fully compared with the past figures." "We must fully realize we are facing a long-term and arduous task," he said. The government unveiled a 4-trillion-yuan (US$588 billion) economic stimulus plan in November to boost growth. Premier confident in China's capital market Premier Wen said he has confidence in China's capital market, noting the government has the responsibility to establish a fair, equitable and transparent market environment. The performance of Chinese shares are decided by the economic fundamentals and company profitability, Wen told a netizen grieving over his huge losses in current sluggish stock market during an online chat. "I have confidence in China's economy and the development of Chinese enterprises and therefore in the country's capital market, too," he said. |
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