According to a senior International Monetary Fund official, China was taking steps to reduce property bubble risks and said it has room to add fiscal stimulus if conditions worsen.

Mr Anoop Singh the IMF director for Asia and the Pacific at a news conference that "China can move away from its reliance on external demand and needs to build up domestic demand. He said Beijing was working on measures to stimulate demand.”

He added that "We don't see (a) hard-landing risk as likely, noting property prices were moderating and sales volumes declining.”

He also said "Our sense is that these risks are being addressed and our prediction is clear: that growth will remain above 8% at the baseline and that if there were to be greater risks externally China has sufficient fiscal space to respond."

(Sourced from www.4-traders.com)