(Adds comments by Shanghai party chief in second
paragraph.)

March 7 (Bloomberg) -- Shanghai plans to
introduce more measures to control real estate prices in China’s
financial hub, said the city’s Communist Party chief Yu Zhengshen.

The municipality is planning to provide more
low-cost homes, increase land supply and will introduce by the end of
March a policy for the leasing of public housing, Yu said at a session
of the nation’s annual parliamentary meetings in Beijing today. Shanghai
is also “currently studying measures to adjust demand,” he said.

Chinese Premier Wen Jiabao, at the opening of the
National People’s Congress on March 5, pledged to crack down on
speculation in the real estate market after the nation’s January
property prices rose at the fastest pace in 21 months. James Chanos,
founder of hedge fund Kynikos Associates Ltd., has called China’s
property market a bubble poised to burst.

Shares of China Vanke Co., the nation’s biggest
publicly listed property developer, have fallen 13.4 percent this year
on concerns about government measures to control prices. Poly Real
Estate Group Co., the second -biggest publicly listed developer, has
dropped 14.6 percent, compared with a 7.5 decline for the benchmark
Shanghai Composite Index.

--Editors: John Liu, Eugene Tang.

To contact Bloomberg staff on this story: Irene Shen in Shanghai at
+86-21-6104-7022 or ishen4@bloomberg.net Chua Kong Ho in Beijing at
+10-6649-7557 or kchua6@bloomberg.net

To contact the editor responsible for this story: John Liu at
jliu42@bloomberg.net