Official: Houses not investment tools

A senior official from China's banking watchdog said the new cooling measures will be effective in three ways.

Yang Jiacai, the deputy director of CBRC, said "Firstly, the new policies clearly state that home loans are consumption loans, and not speculative capital. Secondly, people need adequate housing, therefore houses are not investment tools. Finally, land is limited in supply. The practice of selling to the highest bidder in auctions will only increase prices. The government should manage land supply and set aside some land for policy-backed housing projects."