China home prices continue slide in April

Prices for new homes fell in 46 of China’s 70 largest cities in April compared to the same month in 2011, setting a record for declines, Bloomberg reported. New home prices fell 1% in Beijing and 1.3% in Shanghai; Wenzhou led the declines with a drop of 12.3%. Prices for existing homes fell in 56 of 70 cities compared to the same period last year, with prices in that segment falling in Beijing by 3.2% and in Shanghai by 1.5%. Stock in developers including China Poly Real Estate Group (600048.SH) fell in early trading in reaction to the news. The central government will not let up on measures to curb housing prices first introduced in 2010, Zhang Xiaohong, a deputy director at the Ministry of Housing and Urban-Rural Development, told state media on Wednesday. The measures restrict buying homes for investment purposes in hopes of avoiding a property bubble and lowering housing costs for middle-class Chinese.