China is worried about the housing market

Housing prices do not cease to rise in China, fueling concerns about an overheated property market. According to official figures, in December 2009, housing prices have increased by 7, 8% yoy and 1.5% compared to November 2009, reports the French newspaper People's Daily.

This surge in prices is becoming increasingly worrisome for the Chinese authorities who fear the creation of a housing bubble. The government had already outlined some steps to make credit less available habitat and prevent real estate speculation.

Moreover, the Chinese central bank has just raised the reserve requirement ratio for banks.