From the latest results from the National Bureau of Statistics of China, we can observe that in terms of supply of real estate, the Central Government’s policy is working. China’s real estate sector slowed in May where investments in real estate rose 14.7% during the first five months of 2014, slowing from the overall rate of 16.4% recorded during the period from January to April 2014. Furthermore, we see new construction starts decreasing 18.6% during the period of January to May compared to that of last year. However, if one were to look deeper, the government’s policy may not be working that well. Looking at demand, we see home sales for May alone to be down 11% compared to that of last year. This translates to an 8.5% slowdown in property sales from the period of January to May 2014, compared to that of last year. ......