The property market has taken on more and more financial features, which is likely to create social problems, said Tian Guoli, chairman of China Construction Bank.

A large amount of social capital and resources are now allocated to the real estate market, but the market is yet to develop a proper risk management and mitigation mechanism. Real estate financialization violates the basic principle of matching financial risks and benefits, and will continue to push up housing prices, he said.

"We must work hard to emphasize and strengthen the function of ‘living’" of the real estate and actively develop the rental housing market,” Tian said.