Cities move to tame surging home prices

Shanghai and Shenzhen have taken the lead among major Chinese cities in announcing a new round of restrictions to cool runaway home prices, but analysts suggest a balanced supply and demand would be the ideal solution.

Both announced new curbs on Friday, showing local governments' resolve in taming soaring prices.

Under Shanghai's new rules, local families with one property will have to pay at least 50 percent down payment for a second home. The minimum down payment will rise to 70 percent if the house is either above 140 square meters or priced above 4.5 million yuan ($692,300) and is located within the inner core of the city.