'Fake' divorce sidesteps home restrictions

CHANGSHA - Li Guoliang, 42, is planning to divorce his wife, not to end an unhappy marriage, but to buy a second home even as China's house prices continue to skyrocket.

Li's decision came after the Chinese government imposed restrictions on the purchase of second homes in a bid to curb property speculation.

A divorce could reduce the couple's down payment by 140,000 yuan ($20,505) and mortgage payment by 100,000 yuan, said Li, who is considering buying a 720,000 yuan second home as an investment in Changsha, the capital of Hunan province.