In 2021，Evergrande risk event continued to ferment and had a great negative impact on the real estate market and financial market. Evergrande risk event was caused by high leverage and blindly diversified operation. Besides Evergrande risk events，a large number of real estate companies’ defaults occurred，which means that the industry risks are far more serious than the market perception. The reason is that the long-term fundamentals of the real estate market have changed，and China’s financing system does not match the current change. Despite the measures taken by the authorities to stabilize expectations and prop up credit，there is still downward pressure on the market and defaults of real estate companies will still occur from time to time. In view of this，the short-term policy goal should still adhere to the “stability”，especially to prevent the bursting of bubbles；long-term policy objectives should adapt to fundamental changes and carry out corresponding institutional reforms.