China Property Stocks Rated ‘Cautious’ at Nomura

China’s property stocks were rated “cautious” in new coverage at Nomura Holdings Inc., which said there’s an increased risk of the government issuing new tightening measures.

The introduction of property tax in the “overheated” cities of Beijing, Shanghai, Shenzhen and Hangzhou as well as the “full” enforcement of the land appreciation tax will likely be among policies used to curb speculation, Alvin Wong and Sunny Tam wrote in a report today. Average residential prices may fall 5 percent to 10 percent by the end of next year, according to the brokerage.