The bad situation of real estate market misshapes the relationship between local government and banks. To stimulate real estate market, local governments usually force the banks to obey. However, ANBOUND research team believes that if commercial banks are under too much pressure, it will contribute to the spread of market risks. Such action will eventually lead to loss of both parties. Local economy needs to deepen market-oriented reform and clarify the boundary between governments and markets. Instead of being replaced, the market should play its decisive role in resources allocation.