Even the Police Dept is Building Houses!

Cash Rich SOEs Pushing Real Estate Bubble Ever Higher

The National Audit Office data shows that 25 central ministries are involved in real estate violations, worth billions of yuan. Among them, unlisted assets of 51.6917 million yuan from the Ministry of Foreign Affairs have gone into purchasing real estate. The Ministry of Agriculture has developed commercial housing, acting beyond its authority, and has submitted false reports on housing subsidies. In 2008, a real estate rental service center under the Ministry of Finance took in rental income of 5.3193 million yuan. The Ministry of Public Security has approved construction projects worth 422 million yuan, utterly exceeding its authority. Other data show that among 136 central enterprises under the State-owned Assets Supervision Administration Commission, about 70% of the companies are involved in real estate, among which 16 firms are primarily based in the property industry, including Poly, Sino-Ocean, and China Resources, while more than 80 outside firms have business in real estate. Among the top ten highest priced land purchases in major cities in the first half of this year, 60% were gobbled up by SOEs.

Yes, that is 25 central ministries that have been caught speculating in the real-estate market.

  • What is the Ministry of Agriculture doing building houses?
  • And the Police Department (called “Public Security” here) is in the construction business too?

The government here is just as “asleep at the wheel” as the OFHEO was when regulating Fannie-May and Freedie-Mac.

The Office of Federal Housing Enterprise Oversight (OFHEO) was an agency within the Department of Housing and Urban Development. It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises — the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

24 thoughts on “Even the Police Dept is Building Houses!”

  1. Wonderful story, reckoned we could combine a few unrelated information, nonetheless actually worth taking a look, whoa did 1 understand about Mid East has got extra problerms as well

  2. we like to honor many other online internet sites around the web, even when they arent linked to us, by linking to them. Beneath are some webpages really worth checking out

  3. Wonderful story, reckoned we could combine some unrelated data, nevertheless really really worth taking a appear, whoa did a single master about Mid East has got much more problerms also

Leave a Reply

Your email address will not be published. Required fields are marked *