Housing prices in 70 Chinese cities rose 7.7% in November from the previous year

China's building boom continues "without ceasing" and has even increased since the government enacted policies to cool the speculation, said Jim Chanos, the hedge fund manager who predicted that the market may crash after 2010.

Housing prices in 70 Chinese cities rose 7.7 percent in November from the previous year, even after the government suspended the mortgages for the purchase of a third country and pledged to introduce a property tax. Sales volume increased by 14.5 percent.

"Many of the regulations in China, which are designed to be lined," Chan said in an interview with Carol Massar and Matt Miller on Television Street Smart program. "The boom has continued unabated. In fact, even took a bit recently, at the end of the year."

Chanos repeated his view that China is in a "treadmill to hell" because of the country's dependence on property development for economic growth. Millions of homes are empty in the nation as speculators dominate the market, Chan said, which also describes China's property bubble as "times of Dubai 1000."

China's central bank raised bank reserve requirements on 10 December for the third time in five weeks to control inflation and restrict foreign capital and increased interest rates for the first time in three years in October.

An indicator to monitor stocks of property on the Shanghai Composite Index fell 0.6 percent to a minimum of one week to end at 3 pm. China Vanke Co. dropped 0.4 percent on the Shenzhen Stock Exchange, while Poly Real Estate Group Co. declined 0.6 percent in Shanghai.

More earnings

While progress each year in property prices in November was the slowest in a year, it rose from 18 consecutive month, according to government data.

China Vanke, the nation's largest publicly traded developer, said earlier this month became the first Chinese developer to post annual sales of 100 million yuan ($ 15 million), a goal it had set for 2014 and challenging the government's measures to cool the real estate market.

Chanos, who was one of the first investors to foresee the collapse of 2001, Houston-based energy company Enron Corp., said some Chinese developers are increasingly leveraged and are taking more money from international investors, providing opportunities for hedge funds. He did not mention specific actions.

"Everyone seems very interesting from the perspective of short-sellers," said Chanos, founder of Kynikos Associates LP. "The West is the investor will end up holding the bag real estate here."

"A little extreme '

Some brokerage firms remained optimistic about the housing market in China. Citigroup Inc. said this week the national housing plan to boost social welfare must be positive for real estate and the government wants a "stable" in the housing market and maintained its "optimistic."

chanos see "a little extreme," said Glenn Rufrano, president and CEO of Cushman & Wakefield Inc., the world's largest privately owned real estate services company, in an interview on Television. "The economy is growing and has grown and the housing market is increasing in value. The government knows this and they are getting ahead."

Along with Vanke, Shanghai Forte Land Co. said this month that its sales volume reached 12.6 billion yuan in November, exceeding its annual revenue target of $ 11.5 million. Shimao Property Holdings Ltd., said that 91 percent of 30 billion yuan this year's target sales late last month.

China's stocks have fallen property following the government's policies. Meter stocks lost 26 percent this year, more than double the decline in the measure in question and the majority of five industry groups.

Curbing prices

The Chinese government will loosen the measures to curb property prices next year due to the continuing risk of a bubble, Vanke Chairman Wang Shi told Reuters reported yesterday. The measures have made some progress and moderation in the pace of the proceeds of the property would be an achievement, "said Wang, according to the report.

Porcelain strengthen controls on housing markets and to curb speculative investment from next year until 2015, Xinhua news agency reported Tuesday, citing China's Ministry of Housing and Rural Development.