China’s Negative Tone on Property Will Extend Price Plunge, Analysts Say

New data shows Chinese real estate continuing its slide, as leaders at this month’s ‘Two Session’ meeting display a perceived lack of concern.

Laborers work at a development under construction on the busy Nanjing Road shopping street in Shanghai, Oct. 9, 2011. Mark Ralston/AFP/Getty Images

China’s property prices continue to plummet, struggling to find a bottom despite a plethora of measures, primarily due to the country’s negative tone and lack of policy shift towards its beleaguered real estate sector, according to expert research.

Furthermore, China’s explicitly stated priority of ensuring that housing is not for speculation, implies that insolvent developers may be allowed to declare bankruptcy, further weakening the sector’s fundamentals.