An Exploratory Analysis of Impediments to China's Credit Control on the Real Estate Industry: An institutional perspective

Yigang Wei, Tsun Ip Lam, Yat Hung Chiang, Yuk Ping Barbara Leung, William Seabrooke

Research output: Journal article publicationJournal articleAcademic researchpeer-review

13 Citations (Scopus)


To curb price speculations and overheated investment in the real estate market, the mainland Chinese government has determined to tighten bank lending to the market in recent years, by resorting to administrative tools through specific real estate control policy. With hindsight, the market response seems to have invalidated the policy initiatives. This research is aimed at investigating the impediments to achieving the laudable policy objectives of using administrative credit controls. A series of research interviews with property practitioners unraveled prevalent evasive practices and illicit tactics adopted by developers to thwart policy effects. This study leads to a better understanding of the institutional backdrop behind the less-than-expected results of the real estate macro-control measures. To better steer the real estate market, effective monetary control requires both the government and industry to make concerted efforts and consistent headway towards a complete, transparent and responsive ensemble of institutional arrangements.
Original languageEnglish
Pages (from-to)44-67
Number of pages24
JournalJournal of Contemporary China
Issue number85
Publication statusPublished - 1 Jan 2014

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Political Science and International Relations

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