The Chinese Govt created this property bubble when they unleashed cheap credit into the market to stave off the financial crisis two years ago. Once this giant is unleashed, it is difficult to rein in, considering too high a hand would lead to a collapse of asset prices, a situation which the Govt has to avoid. It is a delicate situation for China.
The Chinese Govt created this property bubble when they unleashed cheap credit into the market to stave off the financial crisis two years ago. Once this giant is unleashed, it is difficult to rein in, considering too high a hand would lead to a collapse of asset prices, a situation which the Govt has to avoid.
ReplyDeleteIt is a delicate situation for China.
Could the Bubble burst after the Shangai Expo 2010?
ReplyDelete