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Homeowners rally over poor payouts

Nearly 1,000 protesters, many of them elderly, blocked traffic in a western suburb of Shanghai yesterday morning in a demonstration over compensation for housing, witnesses said.

Police surrounded the protesters near the major Huqingping highway, but it was not known if arrests were made. Police could not be reached for comment.

Public shows of protest are rare in Shanghai. However, more residents are making their dissatisfaction known over what they say is low compensation to move out of their old homes to make way for development projects.

In the past year, authorities have tried to keep a lid on housing protests by detaining ringleaders but also raising compensation levels.

Officials have also warned the media not to report on demonstrations.

Lawyer Zheng Enchong , who helped residents to bring lawsuits against city districts to win higher compensation, was given a three-year jail term last year for leaking state secrets.

Human rights groups said this was aimed at silencing the legal activist.

Shanghai is trying to upgrade ageing housing, much of which dates to before 1949. But surging property prices and speculation have pitted city districts against residents, who have demanded more money for their homes.

After last year's land scandal involving property developer Chau Ching-ngai , now serving a three-year jail term for financial crimes, Shanghai has vowed to make more low-cost housing available. The courts sentenced Chau for manipulating stock prices and falsifying registered capital, but did not address accusations of illegal land acquisition.

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