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What: Shares of China's SouFun Holdings (NYSE: SFUN ) , which runs an Internet portal dedicated to real estate in the region, fell more than 11% in early trading after officials introduced a price cap on apartments in the industrial city of Zhuhai, The Wall Street Journal reports.
So what: The announcement comes days after SouFun reported lower housing prices throughout China. Regulators have publicly expressed a desire to keep real estate affordable in the Sino superpower, which may help to explain the crackdown in Zhuhai.
Now what: Yet location could also be a factor. Zhuhai borders Macau, the Asian gambling mecca that has been a boon to the likes of Melco Crown Entertainment (Nasdaq: MPEL ) and Wynn Resorts (Nasdaq: WYNN ) . Regulators could fear an influx of foreign money boosting prices. Do you agree? Or has the sell-off created a buying opportunity? Please weigh in using the comments box below.
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