Sunday, July 8, 2012

China Vows to Prevent Rebound in Property Prices

China must firmly maintain its property tightening measures to cool housing prices, Premier Wen Jiabao was quoted as saying on Saturday, underscoring official concerns about renewed bubbles as the central bank ratchets up policy easing to support growth.

Wen made his remarks after the central bank cut interest rates again this week, fuelling fears of renewed housing inflation amid signs the vast property sector is warming up.
"Currently, the property market adjustment is still at a crucial stage and we must unswervingly continue the work and make the fight against speculative property investment demand a long-term policy," the official Xinhua news agency quoted Wen as saying during a trip to the eastern province of Jiangsu.
Wen repeated his longstanding pledge to achieve "a reasonable pull-back" in housing prices, but did not elaborate.
"We must not allow housing prices to rebound that will waste all of our previous efforts," he was quoted as saying.
Home prices inched up in major cities in the second quarter from the previous quarter and some cities also saw new residential apartments picking up in June from May, Wen said.
"Market expectations about the trend of housing prices have showed some changes and people are generally worried about a rebound in housing prices," Wen said.

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