“China’s Premier Wen Jiabao called for policies to curb property speculation, an indication the government is ready to tighten policies to prevent the economy from overheating. Wen, speaking in an interview with the official Xinhua News Agency, said property prices have risen too quickly in some areas and that tax and interest rates are among tools that could be used to control speculation. His remarks were broadcast online today. China’s property prices climbed last month at the quickest pace since July 2008, adding to concern that record lending may create asset bubbles in the world’s fastest- growing major economy. Wen isn’t the only one concerned about overheating: central bank adviser Fan Gang said Nov. 18 that ‘double-digit’ growth wouldn’t be good in 2010 amid the rising risk of bubbles in stock, real estate and commodity prices. Wen said in the interview that China isn’t experiencing inflation and that consumer price increases will be kept in a ‘reasonable range.’”
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