Without Help, China Property Faces 'Demand Cliff', Says Citi

        0654 GMT [Dow Jones] China's local governments need to support the property market with strong loosening measures over the next two months to prevent a sharp decline of demand, Citigroup economists say. "We believe the physical market has reached a critical point, with potential for broader based demand shrinkage across different product-ends," the economists say in a note. Several smaller cities have in recent weeks moved to ease restrictions on home purchase or offer incentives to spur sagging home sales. But the economists say these fine-tuning measures are not enough, and local governments should roll out a loosening "Combo," including easing of home purchase limits in most cities and more favorable mortgage and downpayment policies, to avoid a "demand cliff". (liyan.qi@wsj.com)
        (END) Dow Jones Newswires

        May 07, 2014 02:54 ET (06:54 GMT)