4.De-stocking

China will step up to boost the ratio of registered urban residents and deepen housing system reform, while promoting the citizenship of migrant workers, in order to destock excess inventory and stabilize the real estate market, according to the paper.

"Migrant workers entering cities is the main positive factor for 'de-stocking' at present. Nevertheless, China shall first reform household registration system. Only in this way can migrant workers be able to become long-term urban consumers.

"The 'de-stocking' process will take a long time. During this period, the government shall make policies in light of market conditions. It is important to shatter all kinds of institutional obstacles through reform so as to better play the role of the market, truly promote urbanization and citizenship of migrant workers and implement the reform of household registration system. It is the most important engine for bolstering urban consumption in the future.

"More importantly, the government must stop playing an active role in the real estate market or gaining double benefits through land-transferring fees. The government, therefore, must end its interest in the real estate market."

- Li Tie, head of the China Center for Urban Development at the National Development and Reform Commission

A property development site in Huai'an city, Jiangsu province, May 16, 2015. [Photo/IC]