In the second half of China's neo-urbanization, the city officials should abandon the plans to prop up real estate and give up on land finances. This is because the real estate bubble is about to burst, the local governments have been relying on the real estate as their financing source, and against the backdrop of economic downturn, this source is about to dry up. This situation is exactly the outcome predicted by Chan Kung, the Chief Researcher of ANBOUND Consulting who has proposed the idea of 'Critical Triangle’ in urbanization.

Therefore, the local governments should not expect to get short-term boost from the real estate, as this is no difference to drinking poison to quench their thirst, they will be trapped in the vortex of land finance.

So, each and every policymaker should ask – do we want real estate industry or do we want manufacturing sector?