The preference of people in China, for property over other investments is one reason residential prices have defied a long-running government campaign to put the brakes on the housing market to keep homes affordable. New home prices in major cities, including Beijing and Shanghai, rose more than 10 percent in July from the year before, compared with a more than 10 percent drop in the benchmark Shanghai Composite Index during that period. Even after a recent rally, the Chinese stock market is down 32 percent since the end of 2009. Saving rates on bank deposits are set at 3 percent.
Source: Bloomberg
Source: Bloomberg
