The profit chain of property binds local government and banks together,for which reason our leaders just implement some moderate policies to curl the over-hot bubble instead of some radical measures to pierce it.Anyway,real estate merchant and bankers have contributed a lot to the fiscal income of local government.To some extent the newly-promulgated regulations can alliviate the abnormal real estate market,but it can't eradicate the root without coordinating it with political reform.
The goverment control first- and second-tier cities easier than third-and forth-tier.Just for me,I focus on the third-and forth-tier cities.Being the biggest part of the local GDP,local-goverment and bank and the businessman may fight against the goverment to protect their own profit.Local-goverment always do double-dealing when the policy from goverment damages their profit.Only profit that the businessman seek for.So,I think if the goverment want to control the price in all the cities,it should start from the bank.
The goverment control first- and second-tier cities easier than third-and forth-tier.Just for me,I focus on the third-and forth-tier cities.Being the biggest part of the local GDP,local-goverment and bank and the businessman may fight against the goverment to protect their own profit.Local-goverment always do double-dealing when the policy from goverment damages their profit.Only profit that the businessman seek for.So,I think if the goverment want to control the price in all the cities,it should start from the bank.