A striking reversal in China's property sector. The eastern Chinese city of Wuhu said on Sunday it will delay the implementation of the latest property policy, a reversal demonstrating the national authorities are not yet ready to allow a loosening of control on this key sector.

The policy, just released last Thursday on the government’s website, would have provided cash subsidies and other benefits to home buyers.

Homebuyers at a real estate expo in Hangzhou, Zhejiang province. Premier Wen Jiabao said the
government has two goals in tightening property regulations: to return prices to a reasonable
level and to promote the sound development of the market.(Photo:China Daily)

This move stirred opinion nationwide, some saying it violated the central government’s tightening property policy and others arguing it aimed to ensure access to affordable housing.

Finally, on Sunday, Wuhu posted a brief statement on-line, saying the local government decided to delay the implementation and study it further.

At nearly the same time, the central government stressed the importance of controlling housing prices and expressed its determination to keep current property policies in place.