Torrid Chinese housing sector cools a bit

|By:, SA News Editor

The average price of a new home in China rose 9% on year in January, although that represents the first slowdown for a year. December's increase was 9.2%.

The slight deceleration comes amid attempts by the People's Bank to cool the property sector and rein in lending by tightening monetary policy.

Prices increased in 62 out of 70 cities on a monthly basis and dropped slightly in six.

Of China's largest metropolises, Guangzhou's prices gained 18.6%, Shenzhen's 17.8%, Beijing's 15% and Shanghai's 17.5%.

Meanwhile, Finance Minister Lou Jiwei has played down the fall in the yuan and the risks from the shadow banking sector, while PBOC Governor Zhou Xiaochuan has indicated that the economy can sustain growth of 7-8%

The Shanghai Composite -1.75%.

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