The reason asset prices rise is due to money supply, and the reason asset prices fall is due to money supply. Property values in China have no where to go but up because the RMB supply isnt being controlled. The few ways to crash the housing market besides making home purchases illegal is to contract the money supply by increasing interest rates, decreasing loans, and preventing grants from being able to be used towards the purchase of real estate.
But without such a policy coming from the People's Bank of China, new RMB will continue to enter the money supply thus chasing after limited housing supplies, raising the price of real estate. The Central Bank of China continues to operate a loose monetary policy. Asset prices can go no where but up.
The only institution that can crash market value is PBOC. No one else wields that kind of power and influence.
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