How to establish a long-term mechanism to regulate and control the real estate, as well as to solve the related monitoring and forecasting issues, the author has the following six thoughts and suggestions.1. For more than ten years, China's property market has been in a cycle of fluctuation and regulation. The abnormal fluctuation of the real estate market shows that it has been divorced from the actual needs of social and economic development over the years.2. The reasons why China's property market repeatedly circulate between fluctuation and regulation in a long period of time are as follows. First of all, the basic reason is that Chinese people rely too much on the property market to promote economic and financial growth. Secondly, the key reason is that the money supply has been excessive for a long time, and the structure of investment market is distorted and narrow, which leads to a large amount of money flowing into the property market, and continuously pushing up the house prices and sales.3. It is an urgent task to stabilize the real estate market and housing prices.4. It is not easy to establish a basic system and long-term mechanism that is in line with the national conditions and market laws.5. We can’t wait to establish a sustainable automatic mechanism to hedge against abnormal fluctuations in the property market. The key points of the mechanism design lie in five perspectives, which are detection index, control boundary, hedging tool, implementation area and regulatory responsibility.6. Automatic hedging mechanism is a necessary part of the basic system and long-term mechanism of the real estate market.
