After a poor start to 2010, equity markets in China have weakened further with the launch in earnest of a government campaign against property speculation. The government’s decision to focus on bringing the property market into line arguably makes broader tightening – in the form of tighter loan controls or significantly higher interest rates – less likely. Any such moves are now likely to be delayed until the impact of the property measures can be assessed. Nonetheless, as long as the success or otherwise of the campaign is uncertain, market volatility looks set to stay.