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Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews Recently the Chinese Communist Party (CCP)'s Central Bank asked commercial banks to timely approve and issue housing loans to qualified individuals. The outside world thinks the YTD real estate market slide has caused economic indicators to clearly signal a softening. The Central Bank attempts another bailout. However, experts point out that Governmental control of economic growth has led to a dilemma in the Chinese economy. Without governmental stimulation, the real estate market will collapse; while the stimulus will lead to financial dangers. During the meeting chaired by CCP Central Bank Vice Governor Liu Shiyu on May 12, Central Bank officials and executives of 15 large banks discussed mortgage and credit policies. The Central Bank asked commercial banks to timely approve and issue loans to qualified individuals, and set reasonable interest rates for first-time home buyers. Fifteen commercial banks joined the meeting, including Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank and Bank of Communications. Chinese Financial Analyst Ren Zhongdao: "Real estate is closely tied to the interests of the CCP Government. A lot of Local Government's debts are based on land revenue. If there was no money, developers would go bankrupt, banks would run into problems, bad debts would accumulate and Local Government debts would default. All these are related." Beijing University Guanghua School of Management doctoral advisor Wang Jianguo: "Without issuing loans, the real estate market will drop further and even collapse. The economy is already not very good at present. Secondly it helps save the market. A real estate crash would cause financial crisis in China. However, the real estate at second tier, third tier and fourth tier cities has dropped badly. Even with loans freed up, it would not save the market. In such a situation, I'm afraid not many people would buy." Real estate impacts many aspects of the industrial chain. The front end is about raw materials, steel, cement and other building materials; middle level products are design, construction, furnishing and other industries, while the final level is around commercial property and housing, such as appliances, furniture, bedding and other consumer goods. There are also cultural attributes. Young couples would consider having children and that leads to infant supplies, education and other industries. According to the latest data released by the Bureau of Statistics, the sales of residential housing fell by 9.9% and the sales of office building fell 10.2% from January to April 2014, compared to the same period in 2013. Ar the end of April, the commercial housing inventory reached 52,652 square meters, while new construction dropped nearly 25%. Another set of data released by the Bureau of Statistics in April showed that the slowdown in the real estate market has caused a chain effect on industrial output, retail sales and investment in machinery, land and other physical assets..All of these indicators are lower than expected. U.S. Wall Street Journal commented that the actual slowdown may be even worse than what the data shows. Chinese investment consultant Mr. Deng: "Real estate is a comprehensive industry and its risks have in fact already penetrated into all walks of life. When it is prosperous, everyone worships it; when it collapses, it is definitely out of favor. It is a demand all by itself. But the problem is that it has boom and bust cycles." To boost demand, the CCP leaders announced a series of "micro-stimuli" policies in February, 2014, including tax relief measures for small and medium enterprises, and increasing investments in transportation facilities. Wang Jianguo: "In fact it is the Government who is afraid of a real estate crash. Its original control policy was not really to push down real estate. A real estate collapse would be a very big blow to the banks. Deposits would be at risk, so banks would likely collapse. Then the government would again need to save banks by printing money, which leads to inflation. China has printed too much money already. China's economy is in trouble. Stimulating real estate has financial risks, But not to stimulate, the economy would decline. " In Q1 2014,real estate investment in four provinces were negative, with Heilongjiang and Jilin declining more than 25 %. Finance scholars Du Meng recently said that China's property market is in a typical crisis of overproduction, with 68 million vacant housing units. Japan's Nomura Securities also pointed out that China has a serious surplus of housing and the real estate bubble has burst. 《神韵》2014世界巡演新亮点 http://www.ShenYunPerformingArts.org/