Property slowdown will affect China GDP

No-one should underestimate the significance of recent comments on economic policy made to scholars and businessmen by China's premier Wen Jiabao.

In saying China will “maintain the continuity and stability of economic policies” he was indicating there will be no imminent relaxation of measures designed to cool the property market. These policies, including restrictions on investors buying more than one home, have already begun to have an effect. In June property prices dropped by 0.1% compared with the previous month, which was the first fall since February 2009. Inevitably a property slowdown will hit the construction industry and its suppliers, which will affect GDP, and some observers have predicted the measures will be ease...