A Study Of Profit-distribution During Changes Of Principles That Are Governing Residential Houses In China's Towns And Cities

The problem of housing is of vital importance in the realm of social economy. Since China's policy of open and reform starts, a series of important changes such as selling public houses to the residents at a comparatively favorable price or increasing the price to the rent houses and/or allocating houses to the people all conducted through money, have been made to the outmoded policies known as " houses allocated to the owners as giving or rent to the people at a very low pay". So the process of reforming the housing system in China's urban and rural areas is known as the process of commercializing the way of housing and also the process to adjust the profits through housing.Over 20 years of practice, positive consequences have been registered in housing reform with policies and principles rationalized and profit-distribution justified though some other problems remained unsettled or need to be perfect through further adjustment. This study puts forward proposals, outlines author's logical assessments to the existing policies and the way to deal with relative researches concerned through approved analyses and comparisons.Firstly, this study reiterates the historical process of policy change towards housing reform in China's towns and cities. Commenting various descriptions of features, concrete steps and different results in housing reform at each of its historical stages, the article shows the unfairness of profit-distribution existed in the whole progress of housing reform with many difficulties confronted. It also tells something about the present policy called monetization for houses allocation.Secondly, the article gives facts to analyse and compare these key questions that cause, exist and lead to the remarkable unfairness in profit-distribution among two aspects namely property and income while practising those policies of allocating houses to the people as giving, increasing the price of public houses, enlarging the fees for rental houses and allocating houses through the way of monetization. It comes to the conclusion that so far as housing reform is concerned, house allocation becomes fair through a way of graduation. That is to say increasing the rental fees for public houses is far better than the previous low rental pay; selling public houses to the people is fair and better than allocating them to the people as giving or renting them to the dwellers at a very low pay; allocating houses to the people through the way of monetization (as is called "open financial aid") is fair and better than selling public houses to the owners (as is called "hidden fiancial aid").Thirdly, based on the above-mentioned analyses, this article depicts further about theperfection of commercialization for housing, a more reasonable way for profit-distribution with realistic steps and proposals included: It emphasizes that (1) the existing system called public accumulation funds for housing should be improved; (2) the present policy for economic housing should be perfect as required; (3) efforts should be exerted to reform the housing system for all personnel in the enterprises through the way of monetization. At the same time, the author suggests to stop re-distributing all the newly-built houses to the dwellers so as to prevent the newly-built houses from being allocated again in the previous way. How would these ready-built houses in store be put into transaction market again? That depends upon profit-adjustment. It also requires that governments should change their relative functions thus setting up a perfect and secured housing system.