Recently, Beijing has sent signals indicating it is okay with cities easing or abandoning the price floors, in tandem with other steps the central government has taken to support the market, such as lowering interest rates.
China Real Estate Business Weekly, the flagship newspaper of China’s Housing and Urban-Rural Development Ministry, published an editorial on Aug. 20 urging local policy makers to eliminate price floors.
“Developers should be allowed to carry out self-rescue through price reduction promotions in order to raise funds as soon as possible,” the article said. Other articles in state media have made similar cases.
Some industry analysts have pushed back, arguing in other media that it is too dangerous to remove the floors.
Guangzhou, a manufacturing hub in southern China with a population of 15 million, this month allowed developers to start selling apartments freely without seeking approval on sale prices, according to Chinese media reports. It also lowered the city’s price floor late last year.
Senior Chinese officials—including ministers and provincial leaders—were briefed last month on the party’s investigation into Qin, who served as the Chinese ambassador to the U.S. from July 2021 until January this year, the people said. The senior officials were told the formal reason for Qin’s dismissal was “lifestyle issues,” a common party euphemism for sexual misconduct, according to the people.
The officials were further told that the probe found that Qin had engaged in an extramarital affair that led to the birth of a child in the U.S., two of the people said.
Names of the woman and the child weren’t disclosed to the party officials when they were informed about Qin’s investigation, the people said, and the Journal couldn’t confirm their identities. The investigation is continuing with Qin’s cooperation, the people added, and it is now focusing on whether the affair or other conduct by Qin might have compromised China’s national security.