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China Developers Face ‘High Policy Risk,’ Goldman Sachs Says

China’s property stocks face “high policy risk” as the government seeks to damp gains in home prices, according to Goldman Sachs Group Inc.

New mortgage policy introduced by the State Council “if strictly implemented, could effectively curb speculation in select cities and could thus affect the near-term volume and price outlook in those cities,” analysts led by Yi Wang wrote in a report today.

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