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2013-11-06 — businessinsider.com
... the central government faces a dilemma. Rising discontent over house prices is a threat to the social and economic stability the Communist Party uses as justification for its one-party rule. But the real estate sector is also a major economic driver, supporting some 40 other industries and generating about 16 percent of the country's $8.5 trillion GDP.
That has been important this year in supporting economic growth, which is expected to droop to a 23-year-low of 7.5 percent this year. And it is a major source of income for local governments, so if the central government clamped down too hard, it would cause problems for city authorities.
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