Linfeng and Dengchang, two major economically developed cities in the south of Huainan Province, have already experienced ghost town phenomena. The vacancy rate has continued to rise, but housing prices have continued to rise at a double-digit rate, proving that there are symptoms of a huge bubble in the real estate industry. If not guided, once the bubble bursts, the real estate market will suffer a heavy blow.
There are many industries related to real estate, and the upstream and downstream involve many fields. Therefore, if real estate loses control, it will trigger a domino effect and swallow up the achievements made by China over the years. So he also revealed a message that the macro-control of real estate will be strengthened.
However, local government finances are now heavily dependent on land policies. If policy levers are used to secretly adjust the real estate industry, how will local governments respond
The Construction Minister's words touched most of the participants, including the provincial party secretary Wen Jinglong.
Wen Jinglong has been paying attention to the real estate sector recently. In recent years, the country has introduced many measures to regulate the real estate market. The reason why the measures have not been very effective is that the local government has played an ignominious role. In short, in order to ensure fiscal revenue, local governments have bypassed top-down regulatory measures.
What's worse, some local governments not only fail to take active measures in real estate regulation, but even use many inappropriate means to go against the current, causing the real estate bubble to become bigger and bigger and the danger to become higher and higher. As an economically developed province, this phenomenon is particularly obvious in Huainan.
Take Hanzhou, a city in the central part of Huainan, for example. Today's housing prices have reached 8,000 yuan per square meter, while the local average annual salary is only 30,000 yuan. Ordinary families simply cannot afford the pressure of housing.
As for Qiongjin, the situation is even more exaggerated. In the popular areas in the city center, the housing prices have exceeded 60,000 yuan, making it the third most expensive city after Yanjing, Yunhai and Yuezhou.
After dinner, Wen Jinglong couldn't wait to call Song Wendi.
"Secretary Wen, I was deeply moved by the Minister of Construction's speech today. I was just about to call you to report my thoughts, but I didn't expect you to call me first." Song Wendi took the lead in opening the topic.
"We must be aware that the country may soon introduce macro-control measures for the real estate market, and the measures will be fierce. The real estate market in the entire province must be put in order and develop in a standardized manner in advance, otherwise we will be caught off guard when the storm really comes. In addition, no new projects should be approved in the near future. I am worried that the country will start with the banks and tighten the money supply. When bank funds flow back quickly, the real estate bubble will have reached its end, and a large number of developers will inevitably flee, and unfinished buildings will be everywhere, turning it into a mess." Wen Jinglong has been in power for many years and has a thorough understanding of the economic situation.
"Secretary Wen, I'm afraid that Governor Wei Qun will have trouble understanding. Some time ago, he sent 13 real estate investment promotion teams across the country, requiring all cities and counties in the province to win 13 first-level investment projects within three months. Eighty percent of these investment projects are related to real estate." Song Wendi said with some concern.
Wen Jinglong was silent for a moment, then sighed, "At the Standing Committee meeting, you firmly opposed it. Now that I think about it, you are still very far-sighted. I'm afraid Comrade Wei Qun has also remembered what the Minister of Construction said. I will communicate with him. He should be able to understand and make the right adjustments."
"It's not too late to mend the fence after the sheep have been lost. It's not too late now." Song Wendi said, "What I am most worried about now is the international convention and exhibition center project in Qiongjin."
Wen Jinglong said: "Are you worried about insufficient funds for the project? With the strength of Xiangdu Kaiyuan Group, even if the country implements macro-control and tightens its loan policy, it will not have much impact."
"Although Xiangdu Kaiyuan Group is an old-school investment giant, its development focus has always been on the real estate industry. It does not have much experience in PPP projects like this, nor has it invested too much energy. With the start of national macroeconomic regulation, Kaiyuan Group is bound to be hit on a large scale. At that time, in order to protect its main business, it is very likely to draw funds from its sideline businesses to ensure a safe landing, so the International Convention and Exhibition Center project is likely to cause a delay in progress." Song Wendi analyzed carefully, "In addition, the International Convention and Exhibition Center is the main venue for Qiongjin to host the International Tourism Festival. If the progress is delayed, it will inevitably affect a series of subsequent arrangements."
The International Tourism Festival is a key event set by the province this year and is expected to be held in October. It will have a significant impact on enhancing the international reputation of Qiongjin and is also a key project that Wen Jinglong and other provincial party committee leaders attach great importance to.
Wen Jinglong was silent for a moment, then said, "This week's Standing Committee will discuss this matter. Do you have any idea so we can communicate in advance?"
Song Wendi already had a response strategy, saying: "Contact key enterprises in the province such as Hongda and Jufeng, and let them enter the market in advance."
Wen Jinglong was silent for a long time, and said with emotion: "This is the only way."
Although Wen Jinglong had no good feelings towards local private enterprises in Huainan such as Hongda and Jufeng, he still recognized the importance of it. More importantly, Kaiyuan Group was introduced by Wei Qun. If there were any problems, it would have a great negative impact on the northern faction. Although Song Wendi helped local enterprises to win this project, his starting point was also to resist the upcoming policy risks.
After hanging up the phone with Song Wendi, Wen Jinglong touched his chin and thought for a moment, then called Wei Qun again. After about two years, Wei Qun had gradually adapted to the position of governor, and had lost the arrogance of a newcomer, becoming low-key and methodical. Therefore, the relationship between Wen Jinglong and Wei Qun was relatively harmonious, and Wen Jinglong would give Wei Qun greater support in many government affairs.
Wei Qun could guess Wen Jinglong's intention and said with a faint smile: "Secretary Jinglong, are you worried that the regulation will affect the real estate industry in the province?"
Wen Jinglong sighed and said, "It seems that you and Wendi have guessed the reason why the Minister of Construction held a multi-province discussion this time. On the one hand, he was testing the reaction of the people below, and on the other hand, he was also making a good start and paving the way for policy changes."
Wei Qun smiled confidently and said, "You don't have to worry too much. The country has been talking about regulating the real estate market, but the fact is that every time there is thunder and rain, it will be the same this time. I think the important thing now is to help the developers solve the vacancy rate problem. The government should provide policy subsidies to help companies sell well. As long as developers are guaranteed to make profits, the entire real estate market will not collapse."
Wen Jinglong was a little disappointed when he heard the opposite meaning from Wei Qun's words. After all, Song Wendi's views on this matter were more consistent with his own. This was understandable. Wei Qun had been in Huainan for two years and it was time for him to accumulate strength and make a breakthrough. As long as he could make achievements, the position of provincial party secretary would belong to him.
Wen Jinglong has been in Huainan for five or six years. According to the normal process of the organizational system, Wen Jinglong can't stay in Huainan for much time. In Wei Qun's opinion, Wen Jinglong has become a little rigid and conservative under the promotion of certain policies. After all, he hopes to get out of Huainan unscathed.
Wen Jinglong frowned and reminded: "If the policy is regulated, will Kaiyuan Group have problems?"
Wei Qun said firmly: "Xiangdu Kaiyuan Group is a world-leading multinational enterprise. Both its financial strength and management system are mature and stable. Even if the government regulates, Kaiyuan Group will definitely be able to withstand the risks and ensure that the progress of Qiongjin International Convention and Exhibition Center will not be affected."
Wen Jinglong said calmly: "In order to provide double protection, I have asked Comrade Wendi to contact several local companies to ensure that the project will not be affected."
Wei Qun thought to himself that Wen Jinglong was too cautious, but he said, "We need to consider the problem more comprehensively. I will communicate with Comrade Wendi to ensure that everything goes well."
Wen Jinglong could hear the perfunctory meaning in Wei Qun's words. After hanging up the phone, he sighed and felt a little depressed. Unconsciously, he had been in Huainan for many years. He had unconsciously integrated into Huainan and regarded it as the most important part of his life.
The entire Huainan has long since removed all traces of Li Siyuan and has become a territory with very obvious traces of Wen Jinglong. The current Huainan economy is still growing rapidly, and the city happiness index has been greatly improved compared to the past. The public security environment ranks high in the country, the gap between the rich and the poor is gradually narrowing, and the quality of the cadre group has been greatly improved.
Wenfeng made a cup of strong tea and placed it next to Song Wendi. Seeing that he was frowning, she asked with a smile, "What's the problem?"
Song Wendi smiled and said, "The Minister of Construction's symposium today is really nerve-wracking. Secretary Jinglong, who is usually calm, can't sit still anymore."
Wen Feng sat down and said softly, "I have received the meeting notice from the central bank. If nothing unexpected happens, it is related to the national macro-control policy of real estate. Judging from the rumors revealed earlier, this regulation is not a joke, so as a senior cadre, we must treat it with caution."
Song Wendi nodded. As the president of Huainan Branch of Hua Xia Bank, Wenfeng was also extremely sensitive to the regulation. Many news releases had shown many signs that this regulation would not be a case of much ado about nothing.
Song Wendi seemed to be talking to himself, "I'm afraid Governor Wei made a mistake in his prediction this time. I'm afraid he will suffer a big loss. I just hope he won't transfer the blame to me. The wind is rising and the clouds are flying. This is the general trend. I am just taking advantage of it."
Chapter 0990: The Officialdom is a Fox's Den
The day after Wen Feng went to Yanjing, the State Council issued the "Opinions on Adjusting the Housing Supply Structure and Stabilizing Housing Prices". In the opinions, in response to serious problems in real estate development, market guidance and regulation should be strengthened. In this document, the Ministry of Construction, the National Development and Reform Commission, the Ministry of Supervision, the Ministry of Finance, the Ministry of Land and Resources, the People's Bank of China, the State Administration of Taxation, the Bureau of Statistics, the China Banking Regulatory Commission and other departments were all listed as formulating units and stamped for confirmation.
Subsequently, the State Council held a video conference, during which Vice Premier Li Siyuan pointed out that China's economy had shown signs of overheating as early as a few years ago, and therefore the current social contradictions had become very prominent. We must resolutely curb the rapid growth of fixed assets, implement the land and credit gates, strictly control the entry threshold, continue to strengthen real estate market regulation, and promote housing construction and consumption models that are in line with national conditions.
At the meeting, Li Siyuan highlighted several cities where real estate development was too impetuous, including Qiongjin. This was surprising because Li Siyuan was promoted from the Secretary of the Huainan Provincial Party Committee. Logically, he should have protected Huainan, but he repeatedly emphasized the problems of Qiongjin. This is also an obvious signal that in order to resolutely promote the implementation of this policy, Li Siyuan is very likely to use Huainan as a pilot and Qiongjin as an entry point.
After the meeting, Wei Qun could not sit still. As the governor, he was responsible for the economic development of all regions in the province. Moreover, Qiongjin was a sub-provincial capital city and the engine and weathervane of Huainan's economic development. The macro-control target was Huainan, which would inevitably have an impact on the economy of the entire province. However, Wei Qun still expressed his position to the central government on this round of macro-control.
After the meeting, Wei Qun was silent for a long time, and first called Xie Yawen, the general manager of Kaiyuan Group's Asia region. Xie Yawen was not surprised to receive Wei Qun's call, and said with a wry smile: "Governor Wei, the headquarters has received the news first and will re-arrange the investment industries across the country. In order to avoid risks, the investment direction will be controlled, so the international exhibition center project may be temporarily terminated."
Wei Qun was surprised and said, "We signed a contract. If you want to terminate it, you must pay the penalty."