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Innovative finance policy in new area could help stabilize property market

"The construction is going well so far, and it has entered the final decoration stage. We hope it will be the first high-quality, satisfactory project to set the benchmark for the area's development," said Zhou, who is also a member of the 13th Chinese People's Political Consultative Conference.

Zhou, who leads a group that had a total asset value of 579.8 billion yuan as of June 2017, also suggested that the Public-Private Partnership management model being used in Xiongan could help prevent illegal fundraising and increased debt risks.

"Investment of the Citizen Service Center is following the PPP model ... which we can study for a more efficient and fair coordination between the government and social capital," Zhou said.

The entire construction process, including designing and collecting funds, is expected to be complete in only a five-month period. Even during the Spring Festival holiday in February, more than 3,000 workers remained at their posts at the center's construction site.

"High-quality" and "high-speed" can reflect the key principles of building the New Area, according to the political advisor.

"Innovation is also encouraged in the area and I believe some of the existing policies could be replaced by new models, targeting a longterm mechanism for healthy development of the property market."

Possible measures may include encouraging the rental market and speeding up the renovation of shanty towns, while stabilizing housing prices and preventing bubble bursts, experts said.

Some pilot programs could be launched first in Xiongan New Area and then extended to the whole country when the programs have matured, they said.