China is reputed to have pumped in a stimulus program in 2009 which was bigger even than the one by the US in terms of its GDP.
And a large chunk of this is rumored to have gone into property speculation with all kinds of wild allegations. Probably true because recently, last month, property prices had risen by 20% in a single month!!!
The Govt has probably reached a crisis-resolution situation before the whole thing blew up. They have asked ALL State companies whose core business is not property, to put up an total exit plan within 15 days.
In another move they are looking towards investigating speculative and hoarding practices and insisting on 70% of all land coming into the market this year to build affordable
housing!
There are many signs that economists are using to predict a significant cooling of the economy to lower growth rates.
We need to see what effect this will have, coupled with the sovereign debt issues in many parts of the world, on the double dip. Of course, we will not for some time to come, but this might be a significant inflexion point.
The link ...
http://in.biz.yahoo.com/100323/137/bava2o.html
cheers