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By Ye Xingqing, Zhang Yunhua & Wu Zhenjun, Department of Rural Economy, Development Research Center of the State Council (DRC)

Report No 166, 2014 (Total 4665)

Abstract:

A large number of comprehensive rural property trading markets have appeared across the country in the past few years and they've played a role in promoting rural property transfer and improving efficiency in factor allocation in rural areas. In view of the features of these trading markets, they are quite different in terms of registered capital scale and the types of property for transfer; the markets are mainly profit-oriented, with most of the trading institutions as for-profit legal entities and only a few as non-profit ones; the radius for market trading is limited and most of them are local-based dealers. To promote the sound development of rural property transfer and trading markets, the government needs to pay more attention to the following issues: first, the establishment of trading market should be governed by the real transaction demand and avoid the establishment of the markets in a rush; second, the responsibilities and rights related to the markets and government should be made clear, allowing the market to play a leading role in property trading while the government provides relevant laws and regulations; and third, rural property with incomplete rights and unsound pricing mechanism is inappropriate for trading in the market.