Thursday, December 9, 2010

Chinese state media warning on property bubble

Maybe they figured out this is the only way to rein in the shadow-funded portion of the market.

China's property bubble getting worse: state media
BEIJING — A Chinese government think tank has warned the country's real estate bubble is getting worse, with property prices in major cities overvalued by as much as 70 percent, state media reported Thursday.
Of the 35 major cities surveyed, property prices in eleven including Beijing and Shanghai were between 30 and 50 percent above their market value, the China Daily said, citing the Chinese Academy of Social Sciences.

1 comment:

jesse said...

I think you have some good points about the shadow debt market in China. The politburo is starting to come to realize they cannot simultaneously control inflation and currency. I'm very keen to see what they'll do about it.