Reuters:

First-tier cities like Beijing, Shanghai, Shenzhen and Guangzhou have recently relaxed their housing purchase restrictions. Data shows that during the National Day Golden Week, these cities saw significant increases in property viewings and home sales, while smaller cities did not see much improvement in housing sales during the holiday. Will MOHURD lift all purchase restrictions in these mega-cities? What impact will this "siphon effect" — people flocking to big cities to buy homes — have on the stability of China's overall real estate market? Thank you.

Ni Hong:

Thank you for your questions. You've raised two points: first, about housing purchase restrictions, and second, about the "siphon effect." Let me address both issues.

First, regarding housing purchase restrictions. As I mentioned earlier, since last year, various cities have been granted full authority over real estate regulation. City governments are now empowered to make their own decisions based on their specific economic and social development and current real estate situation. Let me provide some information on the four first-tier cities you mentioned. By the end of September, these four cities adjusted their housing purchase restrictions in slightly different ways: Beijing and Shanghai relaxed their restrictions, Guangzhou fully lifted them, and Shenzhen partially lifted them in certain areas. These adjustments fully demonstrate a tailored and autonomous decision-making approach based on the specific conditions of each city.

Second, regarding the "siphon effect" you mentioned. As a general trend, this is common in the development of world cities. The siphon effect has both positive and negative impacts, and its effects can vary across different cities and different stages of development. In the process of urbanization, China has focused on coordinated development among large, medium and small cities as well as towns. Adopting city-specific policies in the real estate market is an institutional arrangement designed to prevent the negative impacts of the siphon effect in the real estate sector. Thank you.