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Chinanews, Beijing, August 9 – According to the People’s Bank of China, though the investment in the property industry in China has greatly increased, the demand for houses in the country is even greater. Thus the housing price in many big cities is even rising faster, despite the fact that the central government has issued a series of policies to suppress its growth.
In the first half of 2007, the investment on the development of properties in China was 988.7 billion yuan, a 28.5% growth compared with the same period last year. The investment has increased 4.3% faster than last year, too. Compared with investment on fixed1 assets, the increasing speed is 2.6% faster. The investment on commercial houses is 30.8% higher than 2006, taking up 70.3% of the total and 1.2% higher than last year. The average price of houses in 70 big cities in China increased by 7.1% last June, while the figure in last May was 6.4%. In fact the average housing price in Shenzhen and Beijing has been soaring at a two-digit monthly growth for 17 and 14 months respectively. China’s central Bank, the People’s Bank of China, thinks this is reasonable, for there is such great demand for houses in China.
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