In June, a Chinese friend of mine who grew up in the northern industrial city of Shenyang and recently graduated from university moved to Beijing to follow his dream -- working for a media company. He has a full-time job, but the entry-level pay isn't great and it's tough to make ends meet. When we had lunch recently, he brought up his housing situation, which he described as "not ideal." He was living in a three-bedroom apartment split by seven people, near the Fourth Ring Road -- the outer orbit of the city. Five of his roommates were young women who went to work each night at 11 p.m. and returned around 4 a.m. "They say they are working the overnight shift at Tesco," the British retailer, but he was dubious. One night he saw them entering a KTV Club wearing lots of makeup and "skirts much shorter than my boxers" and, tellingly, proceeding through the employee entrance. "So they are prostitutes," he concluded. "I feel a little uncomfortable."

