can never be proved clearly wrong. The current real estate market in China can not entirely implicate in the trend of overseas markets as the Chinese market is not fairly open and competitive as its counterparts.
A couple of weeks ago, the first month-on-month fall in savings since 2001 was due to a flow of funds into stocks instead of bank accounts. Indeed, a lack of investment channels has incurred China's high levels of savings. Since Chinese don't have many alternatives to invest, the demand on the real estate market is still soaring. The raft of regulation on real estate market can help stocks market rather than real estate market itself.
The inevitable results of a mistaken regulation designed to correct the short-term difficulties are that market forces are prevented from having their corrective effect, and they create a situation which is worse than the short-term difficulties themselves.
