China Property Crackdown Alarms Analysts as Economic Risks Grow
- Rapid slowdown could lead to spillover effect, BofA says
- The central government wants to stabilize the housing market
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Warnings that China’s campaign to cool its property market will go too far are multiplying.
Economists at Nomura Holdings Inc. are calling the curbs China’s “Volcker Moment” that will hurt the economy. The credit squeeze in the property sector is “unnecessarily aggressive” and may weigh on industrial demand and consumption, wrote colleagues at Bank of America Corp. A prominent Chinese economist cautioned of a potential crisis should home values drop below mortgages.