Summit Notebook

Exclusive outtakes from industry leaders

The visible hand


Beijing’s affordable housing projects — which account for 10 percent of the government’s huge $585 billion stimulus package, a key to propping up the crucial property market — is making fans
of low income wage earners, but has some developers seething.

Some developers see the government’s role in the market as interference in market forces that are distorting prices.

“This market is monopolised, there is no fair competition,” Feng Lun, the chairman of Beijing Vantone Real Estate Co, told the Reuters China Investment Summit.

“The government is increasingly controlling property prices,” said Feng. “Whatever price they want that’s where the price is.”