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Discusses housing reform and its impact on the governance of housing in China. The roles of the state and work units have been shifted from providers to enablers in the market of housing supply after the introduction of privatisation and the market mechanism. However, the role of work units in housing distribution remains almost intact. The scope of work units’ influence is more extensive than before reform. The involvement of work units as mediators in the housing market affects the performance of the market and contributes to the fluctuations and uncertainty of the market. In order to tackle the new problems arising from reform, the role of work units needs to be redefined.

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