Is China is Approaching an Real Estate Bubble?
Jim Chanos predicted the collapse of Enron. As of May, 2010, he believes that China is forming a real
estate bubble and seemingly everyone agrees that China is in the middle of a spectacular real estate
boom. The question is whether it is in the middle of a rapidly growing real estate bubble.
When the real estate boom burst in the United States, it caused the depression of not only the US but
other economies, as well. In China’s case, a bursting bubble could affect much of the world since China
is the fastest-growing large economy in the world. So far it has been the main engine pulling the world
out of recession.
Beijing is clearly concerned. Authorities have recently moved to rein in the easy credit that has helped
finance China’s hyperdevelopment, including making it more difficult for home buyers to take out a
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