China data shows cooling economy
The latest economic data from China have backed up the view that the
economy there is cooling.
New home prices in 52 out of 70 Chinese cities fell in December from
the previous month, the National Bureau of Statistics said. Foreign
direct investment also fell for the second straight month in December.
 Investment into China has surged in recent years with international
investors looking to profit from China's booming economy.
The National statistics bureau said home prices rose 1 percent in
Beijing from a year earlier and 1.8 percent in Shanghai. Both figures
are lower than readings for those cities in November.
Chinese property data does not give a national average, however
Reuters news agency calculated that home prices rose by 1.4 percent in
December, down from 2.2 percent in November.
That would be the lowest reading in 2011.
Chinese authorities introduced a host of measures last year to try
and prevent speculative bubbles in the property market.
Curbs included bans on buying second homes in some cities and raising
the minimum deposit as well as property taxes.
"Our major progress is that speculative-based investment in the
property market has been curbed," Statistics Bureau Chief Ma Jiantang
said at a news conference in Beijing according to reports.
Overall, property investment increased 27.9 percent to 6.17th Yuan
($980bn; ú640bn) in 2011, slowing from 33.2 percent growth in 2010, the
Statistics Bureau said.
Some analysts have warned that the cooling property market is putting
downward pressure on the overall economy.
"The property market correction is providing the greatest downside
momentum," said Alistair Thornton from IHS Global Insight in Beijing in
a note.
Foreign investment in China fell as the global downturn and financial
volatility dampened investor appetite for spending.
Overseas investment dipped 12.7 percent to $12.24bn in December from
a year earlier, the Ministry of Commerce said. It fell 9.8 percent in
November, its first decline since 2009.
On 30 December the Commerce Ministry said the outlook for foreign
investment this year was "not optimistic".
- BBC
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