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China says home price controls to continue

China says home price controls to continue

Updated: 2012-03-14 12:38

(Agencies)

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BEIJING?- China's premier says government controls imposed to cool surging housing prices will continue despite concerns they might lead to an economic slowdown.

Premier Wen Jiabao said Wednesday that housing costs should be in line with incomes but are now "far from coming back to a reasonable level" despite curbs imposed to discourage a flurry of speculative buying.

China's slowing growth has prompted appeals for the government to ease its controls, which have caused a slowdown in construction and other industries that are a key part of the country's economic engine.

But Wen, speaking at a news conference, said "we must not slacken our efforts" or else there might be "chaos in the housing sector."

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