Credit conditions in China warrant special attention in light of the country's considerable size and systemic importance to the global economy.
The property and credit markets in China represent potential vulnerabilities in an environment of deceleratingalbeit still goodgrowth. In part because of administrative measures intended to prevent or deflate property bubbles, house prices in most Chinese cities have been moving downward since 2008 and appear to have recently bottomed. (See Figure 1.)
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