Here's What People Fear In China's 'Silicon Valley'

SHENZHEN, China (Reuters) - A housing boom in China's wannabe "Silicon Valley" of Shenzhen risks undermining the city's tech boom as young professionals consider moving out to avoid the highest residential prices in the country. In the space of four decades, Shenzhen has transformed itself from a fishing village into a manufacturing center and now a tech hub - attracting top firms and young talent in sectors including technology, advertising and design. But a property frenzy, which has driven prices up by 580 percent in the past 10 years, is beginning to weigh on the city's competitiveness, tech firms, professionals, industry groups and officials say, just as it strives to develop new economic drivers and pull away from old-economy manufacturing. The tech hub has drawn some of China's top names including internet giant Tencent and telecoms firm Huawei, plus emerging new leaders such as DJI, the world's biggest commercial drone maker, and gene mapping company BGI. If these firms and those that are part of the tech-hub's ecosystem of startups struggle to attract talent because of high housing costs, they could start to doubt if Shenzhen is the right location for their operations.