After more than ten years of rapid development, the real estate industry in China is close to saturation, and the bubble is getting bigger and bigger. The two characteristics of bubble economy are that the supply and demand of commodities are seriously unbalanced, and the supply is far greater than the demand. If the real estate bubble bursts, the consequences will be terrible: unbalanced economic and social structure, financial crisis, production and consumption crisis, political and social crisis and so on. The earliest real estate bubble was the Florida real estate bubble of 1923- 1926, which triggered the Wall Street stock market crash, led to the global economic crisis in the 1930s, and finally led to the outbreak of World War II.
It is precisely because the country has seen the harm of the real estate bubble that it will inevitably lead to a decline in house prices and trigger a chain reaction by cracking down on real estate speculation. Housing enterprises have also found clues from the weak sales, attracting sedan chair people (investors and consumers) with crazy false propaganda, hoping to pass on future losses. This is similar to the "escape from the top" of the stock market. First, smoke bombs were used to attract sellers, and then selling triggered a continuous decline, which led to a sharp decline in the wealth of a large number of holders and even bankruptcy, which ultimately affected the national economic operation and social unrest.
The real estate industry is a new industry in China, and the supervision mechanism is not perfect. In addition, the punishment cost of false propaganda is too low. Therefore, large and small housing enterprises and intermediaries will have no scruples and want to get rid of the "hot potato" in their inventory-existing houses. Just like the game of "delivering parcels", the danger is quickly transferred out.
The management cracked down on illegal advertising companies and intermediaries in order to slow down the growth of the bubble, to delay the bursting of the bubble, and even to exchange time for the bubble to be eliminated.