Shenzhen-based Chuanghui Real Estate Agency, which bills itself as China's largest property broker, was shut down overnight. A majority of its branch stores along the Pearl River Delta were bankrupted, leaving the market in a state of chaos.

This development has provoked discussion around the country. Let's look at some of the points from the media.

Reporter:

The Beijing News carried an article saying that the whole property brokerage industry is now facing a crisis. This is due to the lack of government administration. In order to avoid further damages to the innocent property buyers and employees, it's vital to enact a series of strict policies as soon as possible. The government needs to set up an administrative regulatory agency to monitor the secondhand property market. Agencies facing large debts should be merged into bigger agencies with better credit, reducing costs and losses.

An article in the Oriental Morning Post says that some larger property agencies are pleased to see this crisis unfold. The competition in the industry has wiped out some small- and medium-sized property agencies. This leads to the convergence of the industry resources. In the end, several large agencies will monopolize the whole industry. They can work together to control the land market and fake market demand to keep property prices high. If this happens, housing prices will not decrease, as will the common people's confidence in the policy. In order to avoid the negative competition, the government needs to work out some practical policies.

The Beijing Youth Daily commented that the crisis is only an inevitable development. After this setback, the market will be more prosperous. The bankruptcy of the smaller property enterprises can accelerate internal transformation in the industry. Through setting up the new industry standard, the property market will be more regulated.