| From FT: Local governments across China have begun intervening in their housing markets in the latest indication that the country's property market is slowing down. In recent weeks more than 10 large cities and provinces have announced measures that either give incentives to house buyers or provide relief to cash-strapped property developers.
The activism by local governments follows a series of warnings that the property market, a large contributor to the country's high growth rate, faces a sharp slump, even though official indicators show only a modest slowdown. "The only real way out is for prices to fall sharply or for the government to bail out developers," said Shen Minggao, a former Citigroup economist now working at Caijing magazine in Beijing. A weak property market is of particular concern to local governments because many have close links with property developers..... Full Article: Source
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