We should say that over the years, especially this year, we have nine gold silver ten special attention, and why? Because we have every year in the second half of the year to complete the sales area of about three-quarters. So for all nine gold silver ten very high expectations, but the performance of the year, said the market may be far beyond our expectations in the market. May, people are also nine gold silver ten have confidence in, but this may not have had this attitude. Look at how this situation? The current real estate situation by the real estate market to adjust to take the initiative to take the initiative to add a passive subject to adjustment. Take the initiative to adjust this year, we refer to a lot of real estate development or sales in 2007 compared to targets and have a great fall. 2007 What is the situation? In 2007 the real estate market is an unusual year. In 2007 the national general price increases, both the city line on January 23, as well as small and medium-sized cities, individual cities, especially front-line cities of skyrocketing housing prices. Some projects within one year rose 50%, 60%, 70% have so far exceeded the speed up of ordinary residents of housing affordability. The market hit a drive residents to buy, so keep the purchasing power of residents to buy a house, and even some families the ability to buy the overdraft, because he does not buy Pazai, so go up after more can not afford to buy the.
The second, last year, as we all know," prime sites "are frequent, in the second half of last year, media reports out of" prime sites "at least 14. Last year, companies get "prime sites" in excess of the price to more than double the reserve price is not surprising that get the highest price for more than 18 times the reserve price, which appeared in the real estate upside down, which greatly stimulated the people's expectations of future price increases . Because the floor price has exceeded the price of commercial housing. In such a case, the city's housing prices rose too quickly induced a large number of investors to intervene.
Another is the real estate market last year, in particular adequate financial year than in 2006 exceeded 40%. Due to the prosperity of the real estate market, we have other industry, household electric appliances, chemicals, coal, retail trade, and so on, one after another influx of real estate investment. To these enterprises as a diversified real estate investment of choice, and even some enterprises to invest in real estate as part of his earnings from main employment to make up for the loss. He even in the real estate industry's profits over the main lines of business profits. So, last year, real estate funds should be adequate anomaly.
The fourth, in 2007 aspects of the real estate market is extremely strong, and last year completed housing area is 470,000,000 square meters, as the pre-sale, we sold last year, the number of houses it? A total of 690,000,000 square meters of houses for sale than the completion ratio reached 1:1.4, the highest level in history. We have completed the whole of last year housing sales in 2006 increased by 47%. It can be said that supply and demand imbalance last year.
The fifth, we add individual housing loans last year, 800,000,000,000, 000 loan has become a major commercial banks, competition is an important industry. The competition is bound, also had a number of irregularities.
These circumstances, we can draw last year, is a non-normal. The reason, we conduct an in-depth study and reflection. This year, at least in the first half, I think the real estate market is the existence of a self-adjustment of the requirements, so that the normal development of the non-rational returning to the gradual development of the track. Is coming at the end of this year, we look at the performance of the real estate market, added a passive obedience. The real estate market is now forced to submit to the external macro-economic situation. First, the international financial turmoil on the domestic real estate market have serious psychological effects. The people's economic crisis a long time, the ramifications are not clear and more widely in mind, our businesses and consumers are very cautious. And that some of our exports are also subject to a lot of influence, so that the wages of workers of these enterprises decreased.
The second is of low capital markets, our businesses in the capital markets financing of basic channels cut off. To the consumer, buying a house is, after all, the rich, or in high-income-based. However, this year's capital market of low, many investors in the stock market, his family has been greatly affected.
The third is the overall slowdown in economic indicators, said that the international financial turmoil on our major psychological impact on the real impact is minor. In September this year, our all-round decline in economic indicators, GDP growth has fallen to its lowest level in 2004, the day before yesterday, the national statistics released by the General Administration of urban and rural household disposable income has fallen to its lowest level in 2005. Therefore, the current market is a lack of confidence is expected to fluctuate, limited spending power, the ultimate impact on the consumption level of atrophy.
I have also heard the hope that government policy to revitalize the market. We can think of such an environment, what kind of policy can do to enhance their confidence? The international financial market turmoil, how can it expect to return to the real estate market last year, in the end? Our real estate market has not entirely by the properties of commodity supply and demand to determine the transaction. Under such circumstances the practice of real estate assets of more and more obvious attributes, we do not buy off the buy up. All of our real estate business must clearly understand the situation, actively adjusting their development strategies is the best policy. To do a good job in the development of long-term and short-term measures, we immediately went to the end of the year, many enterprises are faced with a settlement, to pay the wages of migrant workers and construction enterprises to pay wages, materials business to pay the price, the bank's loans also facing a lot of The pressure on the accounts. Therefore, from now on we must begin to deal with small short-term preparation for the expected settlement. We do not want these businesses to enterprise workers Wai, in the long term, we should be full of confidence. Why? Because we are at least two.
The first, despite the turmoil in international financial situation is very serious, but urbanization in China to promote economic development of this engine has not put out. The second China is a big country, said China is a big countries of China can not be described, it should be said that China is a huge country, we have a huge market, our real estate development have long-term prospects. Now this is the case, our real estate market is not very bad, to September this year, a national housing area much? 400,000,000 square meters, what the concept than in 2007 fell by 15% over 2006 to a total volume of trading September number is even higher, which shows the enormous market. In the face of a sharp decline in the market, we have some of the city's sales is still up in the.
The second, on policy, from my long-standing policy research experience. Look at the policy depends on two real estate, real estate policy has always been concerned with the overall situation of our national economy has developed to this stage, an important turning point has now been shifted from the supply side the demand side. To support the upgrading of the consumption structure of the real estate industry is. Another is our urbanization and industrialization and urbanization in support of real estate is an important industry for the Third We are now well-off life to the transition of real estate is a well-off residents of an important part of life. Real estate and financial dependency is the relationship between the co-existence, we have not only the development of enterprise development loans and bank loans, there are a lot of real estate mortgage, is secured by real estate investment than done, so the real estate financial security Also very high. Why the Government adhere to the small size, this has a bearing on our country's sustainable development strategy. That is why we have to consider all aspects of the overall situation of the above can be introduced policies that can not be biased.
What is the current situation? At present, we have to secure the GDP growth, real estate investment and consumption through a double pull, pull GDP is the best one of the industry. Therefore, recently issued a series of policies to support the residents on the house. I understand that there are two policies. The first, this policy not only reflects the policy of flexibility, but also reflects the continuity. For example, the first first-time buyers, or a high degree of concern about the meaning behind the speculation, and the second is a small unit, the focus of our policy not to leave small units, the third increase the security of housing to meet the housing needs of low-income families, At the same time, real estate investment can make up for the decline in investment growth resulting from the gap. This policy is indeed more concerned about the livelihood of the people, stimulating domestic demand to maintain a growth rate of real estate investment, the economy is conducive to the stable and healthy operation. If the 98-year policy and the Asian financial crisis, when the introduction of the policy compared to 98 years through a system of innovation launched in this market, the housing market is to tap the potential of housing and security assurances. The policy is both timely and necessary. Both the real estate market, but also the economy as a whole the impact of the overall situation is very critical. We are not in the market, our reform is the best time to do so. We should take advantage of this opportunity and seize this opportunity to address our real estate market, some of the deep-rooted institutional factors, in order to maintain our long-term stability of the real estate market and healthy development. I am more than a purely personal point of view, thank you!
Moderator: Thank you, Qinzhu Ren, Qin Zhuren just talked about now because of two factors, one is unprecedented external factors, there is another consideration is the overall situation of social harmony and stability. Said a moment ago, the bank is very important, we may have the impression that the situation faced by the banks will simply extend the lending situation? Is not simply to restore the previous practice, or as Qinzhu Ren said there is a very new industry in line with the development of an overall program of this thinking. Now call on the China Minsheng Banking Hong Qi, executive vice president, told us the direction of real estate and financial path.
Hong Qi: Ladies and gentlemen, the real estate sector in the financial sector friends Good morning! I am not in charge of departments, from a commercial bank's point of view on some of the thinking of real estate finance. My speech is the subject of real estate and financial direction of the path. China is also taken in real estate financial year will be an opportunity to explore the real estate finance. To promote the real estate finance to recall, reflect the special meeting of the United States loan crisis, mainly to explore China's real estate finance, how healthy and continuous development.
China's financial markets, real estate has been developed from the West. The last century since the mid-1980s, the major Wall Street investment bank, led by the U.S. real estate-backed securities, as well as the private equity fund market as well as the rapidly growing real estate market, but also marks the U.S. real estate market-oriented financial industry. But the United States at this time loan crisis hit us a clear dose-pin. We are also deeply reflect on a number of financial innovation in the United States. Europe and the United States were developed, the real estate market. China's real estate finance the current stage of development also is at the forefront of modernization. Real estate financial instruments and more single, the real estate industry is heavily dependent on funding a facility, which is equivalent to the United States the 1970s and 1980s. We know that the era of greatest risk, the United States is not meeting loan crisis, but real estate financing seriously dependent on bank credit, the risks to the bank. Cyclical real estate crisis has far-reaching impact on the financial and text. 70 of the last century the United States, in the mid-1980s. At that time, when World War II baby boomers born in the adult, the Reagan administration issued a policy to promote the real estate industry, promoted the rapid development of the real estate industry. By 1989, commercial banks, real estate loans of up to 733,000,000,000 U.S. dollars, the total loans of 39.7 percent. But in a series of international and domestic emergencies under the influence of the United States have taken place in the market downturn. In 1989 prices began to fall in real estate non-performing loans increased. According to statistics, major U.S. commercial bank's total assets by 85-year net profit of 0.65 percent fell to 89-year 0.2 percent, real estate and related bad debts account for the proportion of the total amount of bad debts. 89, it reached 31.29 percent, 90-year rose to 43.41 percent. Difficulties in the commercial banks, savings and loan association also has some serious problems. Age 89 the Bush administration used the funds 166,000,000,000 U.S. dollars, equivalent to 3% of GDP that year to save the financial markets, including the establishment of the Qing government-funded debt, followed by 90 years of Japan's banking crisis, the 1997 Asian financial crisis, and even China's Hainan Real estate crisis, implies a real estate crisis in the banking sector led to huge losses. After that, the United States carried out a reflection of the real estate to reduce dependence on bank credit, to break down the real estate loan securitization, it is now apparent that the United States has made two serious mistakes.