In the rising stage of the property market price, the government intervened in land price through administrative means, which actually limited the land cost price. For developers, what you get is what you get. Even if the government restricts housing prices by administrative means, there are still policies and countermeasures in the actual market operation. The land fuse mechanism artificially limits the price height, distorts the real market supply and demand situation, and intensifies the expectation of rising property prices.
What does fuse mean?
Fuse mainly means that when the fluctuation of stock index reaches the specified fuse point, the exchange will suspend trading to control the risk. Specifically, it is to set the fuse price before a contract reaches the price limit, so that the contract trading quotation can only be traded within this price range for a period of time.
The fuse mechanism has two concepts: broad sense and narrow sense. In a broad sense, it refers to controlling the trading risk of stocks, futures or other financial derivatives, and stipulating the range limit of one-day price fluctuation. Once the transaction price reaches the upper and lower limits of the range, the transaction will be automatically interrupted for a period of time, or it may be flat and will not exceed the upper and lower limits.
In a narrow sense, it refers to the "fuse" of stock index futures. It is called "fuse" because the principle of this mechanism is similar to that of circuit safety. Once the voltage is abnormal, the fuse will automatically blow to prevent damage to the equipment.
What do you mean, the property registration has been cancelled?
1. The "fuse mechanism" of real estate registration is to set an interval limit on its price fluctuation range in a single day or within a certain period. Once the transaction price touches the upper and lower limits of the range, the transaction will be automatically interrupted for a period of time.
2. The "fuse mechanism" is a price restriction system, which was originally implemented to prevent the stock market from crashing due to large price fluctuations.
3, therefore, its concept is not limited to a word "Xia". The function of fuse mechanism is to prevent "stock market disaster", but it damages the function of market price discovery. Under the fuse mechanism, the market price can't reflect the trader's willingness to trade in time, which easily leads to price distortion and effectiveness decline.