Since the beginning of this year, the property market in first-tier cities have entered into the "overheated mode", with the housing price rises rapidly and prompted the property price in the second-tier cities to soar too.

ANBOUND's research team believes that the high leverage, excess assets, the impacts from the stock market together with various other issues have all led to the surge in the property price and the real estate is now transforming into financial products.

The introduction of a series of market regulation policy by Shanghai, Shenzhen and other cities shows that the central government is now aware that the frenzy in the first-tier cities’ real estate market is highly dangerous, the attempt to stimulate the residents to increase leverage through real estate Is highly dangerous too, once the real estate bubble bursts, the goal to use the resident’s high saving rates as a basis for future economic growth will be hard to materialize.