After flooding the economy with cash since August, the Chinese government has done a fast 180 and reigned in its stimulus effort – signaling fears of inflation.
A sharp spike in bank lending starting in late 2008 was the central element to Beijing’s effort to escape the global financial crisis. The forceful policy may have worked too well, allowing companies to gorge on easy credit and speculate on properties and stocks. Wall Street Journal
I guess speculators have to look to other emerging economies for easy money in real estate markets. China’s central bank has made it clear: it is having none of it anymore.