China's property prices cooled further in May, to the slowest annual pace in 13 months.
New home prices across 70 cities tracked by the government rose 5.6 per cent from a year ago, versus a 6.7 per cent rise in April.
Back in January, annual prices had been climbing at 9.6 per cent.
Home prices in Beijing decelerated to a 7.7 per cent yearly increase, from 8.9 per cent. In Shanghai the pace cooled from 11.5 to 9.6 per cent.
On a monthly basis, prices rose in only 15 cities, versus 44 in April.
Many economists are worried that a downturn in China's property market could turn to bust, leading to defaults in the shadow banking sector that fuels it.
Policymakers in Beijing obviously want to avoid this, but they are also trying to crack down on shadow banking by imposing tighter lending conditions, which is leading to the fall in prices.
The People's Bank of China is trying to encourage banks to offer more mortgages, which could prop up the housing market without increasing demand from the shadow sector.