CRI听力:China's Property Rating Downgraded

The outlook from property development in China was cut to "negative" from "stable" by Standard & Poor's, which says that tighter credit and further government curbs may lead to rating downgrades next year.

The credit rating company says property sales may start to slow as the government's policies "start to bite," leading to price cuts that may drive home prices 10 percent lower over the next 12 months.

It also says in a statement that Hong Kong's real estate market faces the risk of a "sharp correction".

China's central bank has raised banks' reserve ratio requirements for the ninth time since October.

The government said last month it will maintain curbs after intensifying measures with higher minimum downpayments for second-home purchase and the introduction of annual residential property taxes in Shanghai and Chongqing.

Analysts say price cuts among developers may hurt their liquidity, raising the likelihood for a broader "price war".

For more on this, we now cross live to Grayson Clark, Fund Management Expert at EU-China Social Security Reform Co-operation Project.