The rise of the question The issue of housing affordability in China must be understood in the historical background o Before the 1978 reform, residential housing was a welfare good that distributed by the authority, no problem of affording, but just chance to be allocated and time of waiting o Only after the housing becomes a commodity good the housing affordability issue arises The transformation of housing finance system has played a critical role in this process China Urban Land and Housing in 4 the 21st Century, HK Dec 2007China Urban Land and Housing in the 21st Century, HK Dec.2007 4 The rise of the question ◆The issue of housing affordability in China must be understood in the historical background ◆Before the 1978 reform, residential housing was a welfare good that distributed by the authority, no problem of affording, but just chance to be allocated and time of waiting ◆Only after the housing becomes a commodity good, the housing affordability issue arises. ◆The transformation of housing finance system has played a critical role in this process