Looks like its cooling but probably not fast enough to allay fears of a bubble. And certainly not quick enough to cause a crash either.
Below is an excerpt of the article, for the full article please visit Bloomberg.com.
Aug. 10 (Bloomberg) -- China's property prices rose at the slowest pace in six months in July as the government cracked down on speculation to prevent asset bubbles.
Prices in 70 major cities climbed 10.3 percent from a year earlier, the statistics bureau's newspaper, China Information News, reported today. The value of sales fell 19.3 percent from a year earlier.
Today's data showing sales cooling faster than prices suggests the government will maintain real-estate curbs even as the economy slows, according to Credit Agricole CIB and Mizuho Securities Asia Ltd. China's banking regulator has ordered stress tests for lenders to gauge the impact of home prices falling as much as 60 percent in the hardest-hit markets, a person with knowledge of the matter said last week.
The "clamp down is not having as much of an effect so far - - at least on the country-wide basis -- as policy makers had hoped," said Credit Agricole economist Dariusz Kowalczyk in Hong Kong. "The data increases the risk of more policy action."
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