BEIJING, April 21 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
"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
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