Dragon TV:

Statistics show that the area of property sold, housing included, declined by 10 percent in the first quarter. We know that relevant ministries have introduced quite a lot of measures to boost the sound development of the real estate industry. We would like to know, from the perspective of the National Bureau of Statistics, what is the trend of the real estate industry? How will it influence the national economy?

And other question: the stock market has been heating up since the second half of 2014. The central government once stated that the stock market could support the real economy. In your view, is this flourishing stock market really supporting the real economy?

Sheng Laiyun:

About the real estate industry. The real estate industry is an important sector with a strong correlation effect. It is vital to maintain its steady and sound development because it is closely related to investment and consumption. In the past year, several local governments loosened their limits on property purchases in accordance with the market's changing situation. Relevant departments also relaxed limits on loans, which led to certain adjustments to real estate industry policies. But they were not adopted to strongly stimulate demands from various areas, as before. The control over the real estate industry, which used to be administrative, is now becoming more market-oriented, which means it will be easier for the market to play a greater role. According to our observation, although the real estate industry is still becoming differentiated and is undergoing a period of adjustment, the effects of relevant measures are becoming clearer. Statistics show that in March, the area of commercial housing sold fell 1.6 percent year on year, a 14.7 percent plunge from January to February. Commercial housing sales reported a 2 percent decrease year on year, a 13.8 percent decline from January to February. This demonstrates that the property market will keep developing steadily and soundly as relevant policies are improving.

About the stock market. Generally speaking, there is a strong link between the stock market and the fundamentals of the economy. But in the short term, the fluctuation of the stock market observes the rules of the market. It can be impacted by various factors such as policy, funds, investment expectations and so on. Therefore, short-term variations will depend on the market.