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This chart depicts growth in new floor space started in China, along with growth of outstanding credit. Since the beginning of 2014, new property starts have shrunk dramatically when compared to last year and are down −22 percent for the year to April. Furthermore, the first four months of 2013 saw weak growth as well, which indicates that the lackluster start to this year is due to outright weakness and not a strong base effect from high growth early last year. Policy makers now face a clear decision: loosen credit conditions or continue to slow the real estate market.