- New home prices in China's four major cities rose at the fastest rate since January 2011 last month, again highlighting the economic dilemma that the government finds itself in.
- Price jumped 20% on year in the southern business centers of Shenzhen and Guangzhou, 17% in Shanghai and 16% in Beijing. Overall, prices rose in 69 of the 70 cities that the government tracks.
- On average, prices increased 8.19% vs 7.48% in August and 6.7% in July, the WSJ calculates.
- "Home prices, especially in big cities, are a bit out of control," says economist Liu Li-Gang, adding that China faces a property bubble.
- Another economist, Xu Gao, gives the flip side. "If home prices fall, the economy will certainly slump. The government is trying to find a balance," says Xu.
- The Shanghai Composite is -1%.
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Rising house prices put China in a bind
Oct 22 2013, 03:04 ET