How Stone Industry Gets Out of the Fate of Property Regulation

How Stone Industry Gets Out of the Fate of Property Regulation With the continuous development of stone products, early this year, the national real estate and fixed assets investment policies may face signs of fine-tuning. From late January, the nine ministries and commissions of the Ministry of Housing and Urban-Rural Development, including the United Nations Ministry of Land Affairs and National Development and Reform Commission, inspected the effectiveness of real estate control by local governments. The focus is to inspect the implementation of real estate-related regulation and control policies, and will form phased opinions before this year's **. In April, the relevant policies for real estate regulation were formally implemented.

Under the circumstances that the Central Government has repeatedly made heavy-handed control over real estate, the trend of the Chinese real estate market in 2010 has been exposed. In the first quarter, housing prices will also show a rising trend, and the effect of the regulation will begin to appear from the second quarter. This year's real estate policy will also show a "loose before the tight" trend, while the housing prices are relatively reasonable or a slight increase in the second and third-tier cities of real estate policies will be appropriately relaxed.

Under the circumstances that the Central Government has repeatedly made heavy-handed control over real estate, the trend of the Chinese real estate market in 2010 has been exposed. In the first quarter, housing prices will also show a rising trend, and the effect of the regulation will begin to appear from the second quarter. This year's real estate policy will also show a loose trend before the loose, while the housing prices are relatively reasonable or a slight increase in the second and third-tier cities of real estate policies will be appropriately relaxed. In addition to regulating the real estate market, in order to further ease inflationary pressures, the country will also strictly control investment in fixed assets this year, tightening the mainstream trend of monetary policy.

The macroeconomic situation in 2010 is bound to have a significant impact on the development of the entire stone industry this year. This influence will focus on three aspects.

The expansion of stone production capacity in case of cold weather: Increase the real estate regulation and control in first-tier cities and real estate hotspots, and curb the excessive growth of housing prices. The government funding guarantee will be invalid.

Performance: With the rational decline of the housing market, the demand for building materials in first-tier cities will gradually shrink.

Impact: In 2009, the boom in the expansion of stone production capacity was cold. Recently, the State Ministry of Finance is taking the lead in formulating documents to standardize local pledges of guarantee commitments. One of the important ones is the ineffectiveness of guarantee letters from local governments and officials. Apart from normative guarantees, the relevant authorities may also strictly control the total amount of local government debt. If the documents are announced as scheduled, the lifeline of the expansion of stone production capacity will be directly captured from the investment channels, and the expansion of production capacity will become a reality.

Second-tier and third-tier cities grow into core growth policies: appropriately liberalize real estate policies in second- and third-tier cities where housing prices are relatively reasonable or have not increased significantly.

Performance: The further release of rigid demand in second and third-tier cities will become a new growth point for the property market this year.

Impact: The overall stone industry channel down. Driven by the second- and third-tier real estate market, the region with the fastest growing performance of stone companies will also appear in the region. The middle and low-end products with high performance-price ratio will become the darling of the market, and some economic and durable high-end products are also expected to appear hot.

Low-end product market worrying policy: building materials to the countryside performance: Although the implementation of building materials to the countryside has not been implemented, but the entire pan furniture industry, including the stone industry, have tightened their nerves, hoping to use this Dongfeng, the channel has been hit The third and fourth tier markets not only benefit from good policies, but also achieve big expansion from the brand and market layout.

Impact: Throughout the stone industry, leading companies such as Conley have already been well deployed, and through product sales and other forms, they have gradually penetrated into the third and fourth line markets. In the traditional sense, the low-end products with no brand and no after-sales products were gradually replaced by the low-end products of the brand enterprises, and the market space was further compressed. In 2010, this trend will be further continued. The low-end products that occupy low prices for a long time in the rural market may face a life-and-death battle, and the classification of the entire industry will also accelerate.

Through the understanding of stone companies, according to industry insiders, the New Deal is mainly for the "National Ten" since the release, the property market regulation has not been put in place, the recent property market has once again shown signs of warming. The New Deal is still nominally implementing the "National Ten Articles," which actually exceeds the scope of the "National Ten Articles," and the impact is more comprehensive. Therefore, it can be said that this policy is the third tightening control following the first wave in December last year and the second wave in April this year. Or affect the first-tier urban building materials demand companies sink sales channels as the stone industry is closely related to the property market, this control policy will affect the stone market what kind of impact? The reporter interviewed a number of construction stone companies in Yunfu and found that the building stone company did not appear in the imagination of the panic, but rather very indifferent, most companies are optimistic, so the development is visible.

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