The People's Bank of China (PBC), in its recently issued report - '2004 China Real Esteate Finance Report', expressed its support on developing a healthy real estate finance system in China.

The report acknowledged that the real estate industry is a vital part of the Chinese economical growth plan, given the indestry's far-reaching effects on the overall China economy.

China has experienced a construction boom in the last decade. Real estate prices in hot markets like Beijing and Shanghai has more than doubled in the last five year. The Chinese govenmenr has recently sought to cool down the real estate market by issuing strigent policy regarding new land development and tightened the money supply to the industry.

The PBC report looks to sooth market watchers' worry that the government is going to suppress the continued development of real estate industry at all cost. This will help the long term health of the industry.