Loss of China property momentum being felt as economy hits mid-year slowdown

Beijing

CHINA'S economy hit a mid-year speed bump last month as factory output, investment and consumption slowed. While there were multiple reasons - from a deleveraging push to capacity cuts to the simple fact that the heady pace of first-half expansion was always likely to prove unsustainable - one key cause of the weakness was a pull-back in property.

Dubbed the most important sector in the universe in 2011 by a UBS Group AG economist, China's real estate market employs millions, drives demand for steel, cement and glass, and underpins consumption of everything from appliances to cars. So it is a big deal that the country's push to restrain prices is now starting to slow the pace of sales and development.