China's money supply has increased 3x since 2008
July was the lowest for inflows in six years
China real estate: A bubble bursting?
"The exposure of China's banks (and now shadow banks) to real estate may look different than it did in the U.S., but it's very real. The main exposure is the reliance on property as collateral to support virtually all forms of lending throughout the economy, a situation that is very similar to Japan in the 1980s," he added, referring to a collapse in Japan's property market after a boom.
In recent weeks, mid-sized developers such as Hong-Kong listed Greentown China Holdings and Shui On Land issued profit warnings amid a downturn in the housing market.