On July 14, Shenzhen introduced the “Shenzhen Eight Regulations” to curb the Shenzhen property market, which has had a high fever after the epidemic has stabilized this year. Since the second quarter of this year, housing prices in some large and medium-sized cities have risen due to ample liquidity, which has obvious purposes of preventing currency devaluation and hedging inflation. Its complexity is worthy of vigilance.The real estate bubble, like the stock bubble, naturally has a self-paralysis effect. The myth of “invincible real estate” was shattered one by one in South Korea in the 1980s, Japan in the early 1990s, East Asia in 1998, and the United States in 2008, and all caused unmanageable consequences.In the face of the real estate bubble, expectation management must be strengthened. Obviously, we are already in a predicament of being kidnapped by real estate and we must face up to the problem of structural bubbles in real estate in some regions. From the perspective of the safety of the financial system, we must take practical and effective measures to achieve a soft landing, and beware of excessive economic real estate leading to the “cancer” of the financial system. Therefore, Shenzhen's actions are rational, timely and sober.
