April 21, 2017 / 5:05 AM / in 10 months

China's Xiongan a boon for private investment, not speculators - state media

BEIJING, April 21 (Reuters) - Xiongan, China’s new economic zone envisaged by President Xi Jinping to match the success of Shenzhen, will open up opportunities for private investment and seek to keep out speculators, a top state newspaper said.

The Economic Daily, a newspaper managed by the state cabinet, said China will test out a new model for real estate development in Xiongan.

It said the real estate project would “reap no benefits for speculators,” adding that Beijing will continue to crack down on speculation.

“Such a long-term plan (Xiongan) will not tolerate short-term speculation. The future economic zone will certainly not be built upon a foundation full of bubbles,” it said.

The newspaper said Beijing will release a “high-standard” city plan for Xiongan that will provide appropriate opportunities for private investment.

China has set high expectations by touting the Xiongan New Area as a successor to zones in Shenzhen and Shanghai that helped make China an economic powerhouse. But frenzied investor speculation in real estate and stocks have posed a headache for regulators since Xiongan’s establishment on April 1.

Authorities have taken steps to block property speculators from the market by quickly suspending property sales and shutting down real estate agencies. Warnings from regulators about excessive speculation in stocks that could benefit from the new area have also sent prices skidding in recent days.

The local auto market has been disrupted by increased speculative buying in cars, The Economic Daily report said, adding that regulators have pledged to punish illegal car sales and market activities. (Reporting by Yawen Chen and Nicholas Heath; Editing by Shri Navaratnam)

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