"So to some extent, the Chinese government has managed to insulate this big adjustment in the housing market from the financial sector and prevent a bigger crisis.
So instead, they're going through this sort of slow, painful, grinding adjustment," Wrigley added.
Urban jobless rate rose to a six-month high, while year-on-year home prices fell at their fastest pace in nine years.
Prasad criticized the Chinese government for being too slow to enforce bolder measures to stimulate the economy.
It also requires early action, and we haven't seen either of those from the Chinese government," he said.
Persons:
Eswar Prasad, Prasad, Duncan Wrigley, Wrigley
Organizations:
Cornell University, Everbright Securities, Reuters
Locations:
SINGAPORE, China