More measures to cool China's property market in the works

Beijing will announce more tightening measures to cool the nation's property market even at the cost of growing non-performing loans, unfinished construction projects, or worse, corporate failure, observers say, noting that the government has dropped its concern about the economic recovery not being consolidated and is ready to curb the overheated economy.

Most urgently, economists say, Chinese policymakers have to prove themselves with regard to macro regulation because their credibility is at stake. The government has to make sure that the property market is under control this time, otherwise the effectiveness of China's macro regulation will be questioned, Qu Hongbin, co-head of Asian economic research and chief China economist at HSBC, said last...