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China Seen Cracking on Property Controls

China’s slump in property sales and construction is spurring speculation that the government’s four-year-old campaign of real-estate controls will start to crack.

Citigroup Inc. sees “targeted easing” including on home purchase restrictions, while Bank of America Corp. says smaller cities may see looser rules. Centaline Group, parent of China’s biggest real-estate brokerage, says some cities are inclined to adjust policies such as the level of scrutiny of buyers.