"The more pragmatic approach from regulators is warranted, " said Michael Symonds, credit analyst for financials at Daiwa Capital Markets Europe.

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"We are expecting a different degree of price correction in different cities, with major and coastal cities likely to see (bigger declines in prices) this year compared to the inner cities, " said Daiwa Capital Markets analyst Danny Bao, who added that he expects property transaction volume to fall 10% this year.

WSJ: China Home Prices Fall Again