From the chinese press

Deflating realty bubble is vital

The central government has taken some measures to curb rising housing prices because of which the real estate sector in some cities has suffered some losses. But in the long run, deflating the housing sector bubble won't hurt the economy, says an article in China Securities Journal. Excerpts:

As a key industry, the real estate sector has played an important role in maintaining sustainable economic growth in China, especially during the global economic recession. That's why some people have expressed concern over government measures to control housing prices, which have hurt the property sector in some cities. Such people should not worry because the housing sector has developed a big bubble that has prompted prices to rise to unprecedented levels. This has limited people's capacity to spend on other commodities and weakened domestic demand, and thus made it imperative to curb housing prices.