The average price of new homes in China's 70 large cities increased 5.3% on year in May, up from...

|By:, SA News Editor

The average price of new homes in China's 70 large cities increased 5.3% on year in May, up from +4.3% in April and the highest rise in over two years. Prices in major cities such as Beijing, Shanghai, Shenzhen, Guangzhou and Xiamen grew over 10%. The trend reflects the difficulty the government is having in controlling prices even as it tries to curb China's credit boom. One problem is that local authorities have been slow to implement measures aimed at cooling the housing sector.