Wednesday, March 30, 2005

China Worries About Housing, Cracks Down

Officials in China are candid about the property boom and its effects on the nations economy. Bloomberg, "China's rising property prices pose a threat to the stability of Asia's second-largest economy. Excessive growth in housing prices has directly undermined the ability of city residents to improve their living standards, affected financial and social stability."

Actions will be taken to follow up on increases in intererst rates and required downpayments. "Local officials who fail to take measures to rein in growth will be held to account."

"'The State Council's tone is very harsh,' said Fan Weiwei, a Beijing-based economist.,'People's expectations of future property prices will definitely be changed. The likelihood of further price surges is becoming minimal.'"


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