China Shares End Slightly Down On Property Market Weakness

The benchmark Shanghai Composite Index while the Shenzhen Composite Index rose some points. Many in China believe that the housing market is the safest place where people can put their money. The stock market is volatile, bank deposit rates are low, and many believe property prices will only continue to go up. Prices for existing homes in Beijing rose 60% last year, and they are now more than 20 times the average salary for a resident of Beijing. Prices have gotten so out of control that some people have started calling themselves slaves to their own mortgage payments, or house slaves.

China's shares ended a tad lower today as real estate developers fell on Beijing's latest reiteration Saturday of the need to curb property speculation, while some banks weakened amid continued concerns over their exposure to high-risk loans to local governments.