The pain barrier. We believe the time has come for investors to return to China’s property sector. Given the current state of the market – every major real estate metric is in negative territory – we think more powerful policy stimulus is on the way. But why now and not one, three or six months ago? Three reasons: 1) Based on the past three down cycles, the y-o-y declines in sales growth and land purchases have reached a level that previously acted as a trigger for meaningful policy support; 2) our credit team believes the 20% fall in land sales y-t-d is the maximum local governments can tolerate; 3) pressure on employment in the real estate industry is building. Yes, we admit we may be making this call too early but work on the simple assumption that an orderly housing market is critical to the health of the economy.