ren Zhiqiang: The price is determined by the people who can afford it

Housing not only has the function of living, at the same time the property of assets is a financial product or a medium of financial products.　　Assets naturally have the conditions to invest in and gain value from the appreciation of assets. If the price of a place is high or low, the phenomenon is not determined by how many people cannot afford housing, but by how many people can afford it. If someone is willing to pay a higher price, the allocation of this resource will be made by the high bidder.　　When more people are willing to pay this high price to obtain the corresponding resources and assets, the irreplaceable can not be evenly distributed, will be allocated according to the price. If some officials chant that the income of departmental and municipal cadres is not affordable, it is because their income distribution does not include housing provided to them in kind or in disguise, except that they may not be private wealth or have contingent assets (such as restrictions on transfer transactions). What they lack is not the right to live, but rather the pursuit of additional household wealth in pursuit of an appreciating asset. (Excerpt from Sina blog) (Article Source: Securities daily)