China should cap new home prices to avoid 'severe' problems – state researcher

China should urgently solve problems in its property market by putting a cap on the prices at which new homes are sold, a researcher for the cabinet was quoted as saying on Wednesday by a state-owned newspaper. "The government should strengthen price controls on commercial housing to prohibit exorbitant profits by executing a price cap on new houses, which should be calculated by adding reasonable profits, say at maximum 20 percent, to costs," said Tang yuan, department chief at the Policy Resea