Stability in mainland housing stays in focus

China Banking and Insurance Regulatory Commission chairman Guo Shuqing yesterday reaffirmed that authority was committed to a series of policies to stabilize the housing market.

His comments came as the Ministry of Finance said the property tax will not be expanded to other areas this year as conditions are not right.

Guo emphasized the point that "houses are for living in, not for speculation" while also pointing to the long-term mechanism for stabilizing land prices, housing prices and expectations that real estate should continue to improve.

He also encouraged financial institutions to provide loans to quality real estate enterprises to merge and acquire projects in a steady and orderly manner.

Still, new home prices in 70 cities excluding state-subsidized housing declined 0.13 percent last month from January when they dropped 0.04 percent, National Bureau of Statistics figures showed yesterday.

Likewise, values in the secondary market dropped 0.28 percent - the same pace as in January.

A liquidity crisis for developers has led to defaults and fears of contagion that have reverberated throughout the industry and the wider economy.

In other property news, Logan Group (3380) said it has set up a special team to solve the debt problem and will not be "lying flat" in view of the recent pressure on short-term liquidity.

Referring to capital market concerns related to bonds, the group said it will pay full and fair attention to the interests of domestic and foreign financial institutions and investors.