China Housing Market Cools as Beijing Tightens Reins

Property investment in China grew at a slower pace in May, as Beijing tightened its control over the property market, which regulators consider as one of the biggest risks in China's financial system.

Real-estate investment in China rose 18.3% in the January-May period, which compared with a 21.6% gain for January to April, according to data released Wednesday by the National Bureau of Statistics.

New construction starts retreated more sharply, with construction starts measured by floor area up 6.9% compared with the 12.8% increase recorded in the first four months of the year.

Home sales by volume--a major indicator of demand--climbed 56.5% in the first five months of 2021 from a year earlier, slower than the 73.2% gain in the January-to-April period.

China's top banking and insurance regulator, Guo Shuqing, reiterated in a financial forum last week that real-estate bubbles remain "serious" and investors will face "severe losses" for housing speculation.

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  (END) Dow Jones Newswires
  06-16-21 0324ET
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