The last time there was a rapid rise in speculation on Chinese housing, it resulted in “ghost cities” of unsold housing across many cities in China. Now another round of speculation is gearing up. The Chinese state must do all it can to contain the possibility of bad loans, especially given that the Chinese economy is not growing at 10% anymore. If the Chinese economy gets in trouble, the whole world is in trouble.
Read in the Wall Street Journal
Residential buildings in Shenzhen, Guangdong province, China. Housing prices in China’s larger cities are again rising quickly. PHOTO:BLOOMBERG NEWS
