Property sector booms in Shanghai

Shanghai property investment surged in the first 10 months of the year despite moves by the authorities to cool the luxury residential market.

City officials said the tight supply of housing has started to ease but denied that a bubble was forming in the city's property sector and said the market should continue to rise.

Property investment rose 17 percent yearon- year to RMB 77 billion in the January- October period, according to government statistics. Investment in property comprised more than one third of Shanghai's total spending on fixed assets, which hit a record RMB 208 billion for the period.