China’s housing price might have more potential to go down rather than go up. A review of the relationship between the price of China’s national property price and Chinese real estate companies listed on A share shows such a trend. Historically the two have a fairly high positive correlation. Both experienced up and down turn in the last 5 years. In 2010, however, the real estate companies’ share price has corrected about 20% from their peak (see dotted line in the graph), while the property price has just begun to ease. Such a discrepancy implies that there might be more downside for China’s housing price to fall further in the near future. A correction of 20% to 30% from the current level is possible based on the above chart.