THE GUARDIAN

Volkswagen has admitted it lost its way in China, where it sells a third of its cars, saying it suffered a "terrible wake-up call" after discovering its brand reputation had plummeted in the eyes of the Chinese.

The admission was made by the German carmaker's chief marketing officer Alexi Orlov, who was speaking at the Cannes Lions International Festival of Creativity Tuesday. "We had a terrible wake-up call in 2010 when we discovered much to our surprise and horror that we were only the 126th best ranked in China as best-loved brands," he said.

Volkswagen had been hit by competition both from Chinese companies and international rivals.

FINANCIAL TIMES

Here's an awkward reminder that despite the clear slowdown in the Chinese economy, the property market remains bloated.

According to data published by the National Bureau of Statistics (NBS), new home prices in May rose by 10.2 percent in Shanghai and by a full 15.3 percent in Guangzhou.

Local governments have been slow to implement market-cooling measures announced by the central administration in March, when it reinforced a campaign against rising prices.