Chinese city's property policy reversal a test of central govt resolve

Beijing/Shanghai

THE Chinese city of Heze has reversed a rule designed to curb real estate flipping, boosting shares in property developers on Wednesday and sparking speculation that more cities could follow suit as slowing sales weigh on the economy.

The policy reversal, announced by the city's government, was the first of its kind since authorities around the country began taking steps about two years ago to control soaring house prices, according to state-run media. It comes as China's economy loses steam and new home price growth slows, particularly in smaller cities like Heze.