Recently, the National Development and Reform Commission is pushing for the establishment of the "characteristic towns" to revitalize the local economy and to attract social capital investment. However, in China it is easy for the local governments to participate in such projects en masse. Anbound research team has found out that the establishment of the “characteristic towns” has shown signs of them moving towards bubble and property. Some developers construct large-scale commercial real estate and residential areas within the towns' space. This would actually bring the urban real estate problems to towns with beautiful sceneries and good resource conditions, which would be disastrous for the towns. From the policy point of view, the Development and Reform Commission should not be too impatient or too fast in the establishment for the “characteristic towns”, and should not introduce drastic changes within a few years’ time.