The recent regulatory changes in China’s property sector – characterised by “red lines” and a forthcoming property tax – suggest that the nature of the market crackdown this time is different from past episodes.However, an abrupt change of expectation for such a large part of the economy and financial system is risky. Beijing, therefore, has a delicate task on its hands and needs to proceed cautiously.While deleveraging certainly remains a high priority, with property still a significant…
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