China Seeks to Prevent Housing Bubble
One of the most substantial concerns about the Chinese economy is that inflation in securities, food prices and real estate could create bubbles. The central government has hoped to keep this under control with mortgage rules. Recent data show that has not worked.
China's new home prices posted the broadest advance since December 2011, a test for new Premier Li Keqiang as he seeks to prevent a bubble without damping economic growth.
Prices climbed in 62 cities of the 70 the government tracks in February from a year earlier, the National Bureau of Statistics said today. Beijing prices jumped 5.9 percent from a year earlier, the biggest since February 2011, while they advanced 8.1 percent in Guangzhou, the most since January 2011.
Brand new efforts to cool the market go into effect this month. However, they may be no more effective than the slew of such efforts instituted in the past.
Filed under: 24/7 Wall St. Wire, China, Housing