Housing prices showed signs of recovery in June, with property prices climbing in 25 of 70 major cities. This compares with only 6 in May.
The trend in property sales also seems to have bottomed according to Societe Generale's Wei Yao.
But for now commercial banks are still likely to restrict lending to developers on Beijing's behest.
In fact, Yao writes, "The rebound in property prices, together with recent news of mega land deals, seem to have left Beijing a bit 'embarrassed' about how quickly land and property prices bounced back again."
In fact, the National Bureau of Statistics reiterated that China should retain its property curb policies; make its curbs on property speculation a long-term policy; and warned against a rebound in prices.
For now Yao expected the property sector to continue to weigh on the overall economy. Here are two charts from Yao that show how China's housing bubble is shaping up:Don't Miss: 10 Ways China Is Changing The World >
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- Societe Generale