In what appeared to be a dramatic about-face, a senior Chinese government adviser reiterated Beijing's tough stance on property tightening measures, one day after the emergence of a proposal by a group of his colleagues urging the authorities to relax policies on the troubled sector.

Li Deshui, vice director of the economic committee at the Chinese People's Political Consultative Conference, was quoted by the state-run Xinhua news agency as saying that China must resolutely prevent housing prices from rebounding and make every effort to let prices return to 'reasonable' levels.

Mr. Li made the comments at a regular meeting of the CPPCC, the official advisory body to China's legislature, the National People's Congress, Xinhua reported.

Mr. Li's pledge came a day after the English-language China Daily reported on a proposal by the standing committee of the CPPCC that called for an end to the government's two-year-long property-tightening campaign, specifically for the high-end segment of the market.

The call for housing-curb relaxation was part of the group's broader proposal on how to adjust financial policies in order to prop up a slowing Chinese economy.

The article led to widespread confusion about Beijing's exact stance on the issue, triggering speculation that an internal policy debate is intensifying. But it was also viewed as an attempt by interest groups, such as some of the country's property tycoons who are CPPCC members, to sway public opinion and, eventually, decision makers in the central government.

Consisting of mainly non-Communist Party members, the CPPCC's mandate is advising on policy, rather than policy making.

Given the context, the Xinhua report, which was in Chinese, appeared to be an attempt by Beijing to minimize any damage that the proposal may have caused.

China's top leadership has in recent days taken pains to quench hopes for a reversal of its property-tightening measures following signs of a pickup in investment and sales in some cities.

Senior Chinese leaders, including Premier Wen Jiabao, have repeatedly vowed to pierce the property bubble and bring prices back to more affordable levels since Beijing launched the tightening campaign more than two years ago.

Precisely because of the campaign's limited success so far, Beijing clearly understands that its reputation could be at risk if public discontent and frustration spreads.

That said, Mr. Li did seem to have left some leeway for a potential softening in property controls in the future.

'When it comes to boosting domestic consumption, real estate is one topic that can't be avoided. And it is a very important aspect of it,' Xinhua cited him as saying.

The government's housing market controls need to combine purchase curbs with sales promotion, Mr. Li said, adding that preferential policies should be introduced to encourage genuine owner-occupiers to buy apartments.

He also recommended the government to replace administrative measures like purchase curbs with levying taxes on property sales and ownership.

Mr. Li's comment may have temporarily cleared the confusion surrounding the proposal. However, as China's economy continues to weaken, the debate about the government's property policy will only intensify. As Mr. Li put it, it's an issue that 'can't be avoided.'

Shen Hong