China's property speculators make a dangerous bet in Hefei

Hefei, China

IN 2016, Hefei, a manufacturing hub of about eight million people in China's east, was one of the world's hottest property markets and a prime target for price curbs designed to knock speculative heat out the sector.

Analysts say restrictions introduced last year and subsequent rhetoric from policymakers should have sent a very clear signal to investors that the authorities would tighten curbs further in Hefei and elsewhere. Instead, speculators in Anhui's provincial capital are betting just the opposite - that the government will ease curbs to support growth.