The Chinese government was forced to raise mortgage rates to stop the rise in house prices and to prevent the formation of a bubble in the real estate market of the country. House Price Index, published by the Bureau of Statistics of China showed that in September the average cost of housing in 70 cities rose by 0.5% compared to August and by 9.1% in comparison with September last year. The volume of sales in September compared to last year also increased by 16.6%. In addition to the rise in prices and sales volume in China is seeing growth in the construction and real estate investments. In particular, in September the number of buildings started increased by 44.3%, while total investment in this sector grew by 36.4% in the first 7 months of this year compared to last year. Chinese authorities are trying to avoid the formation of a bubble in the property market, but so far their cooling measures have not brought tangible results. In April, the government made it mandatory for banks that issue mortgages, set the first installment of 30% for the housing area of
