China’s manufacturing increased slower than expected in May, as the reports indicated property sales drops in three major Chinese cities. This resulted in stock declines all over Asia as they speculate that China’s economy may slow.

The manufacturing index, from which the figures are based on, is announced by China’s National Bureau of Statistics. The study covers over 20 industries which include 730 companies.

According to Brian Jackson, a strategist based in Hong Kong, these signs of potential slow down may be intensified with China’s efforts to exert more control in property markets and with Europe’s crisis.

According to Premier Wen Jiabao, the world should be wary about another potential economic collapse. Similar growth declines in manufacturing are witnessed in other countries, including Australia and the cooling of U.S. manufacturing.

That being said, however, the chief China economist Qu Hongbin that tightening efforts will help ease the situation, and that investments on infrastructure and durable private consumption will only help improve the situation.

Economic momentum continues to be strong and growth will still be relatively fast, but growth rate will slow down. This may also be a sign that China’s economic recoil is becoming stable.

Comparably, urban property prices reached a 12.8 percent jump in April. One company, Wuhan Iron & Steel Group, blames property loans curbs for the decline in steel demand for the month of May.