- The Chinese government is controlling the real estate market and allowing short, two-year boom bust cycles.
- Western investors don’t understand China and see either a bubble or a crash.
- The best way to invest is to seize the wild market swings created by such erratic behavior.
The question we would all like to know the answer to is this: is the Chinese real estate market in a bubble?
If it is, any kind of burst would create a credit crisis, lower economic growth, and quickly spill over first on global financial markets, and consequently onto the global economy.
There is no consensus on whether or not Chinese real estate is in a bubble. I’m going to describe both perspectives to give you the best information possible for China and Chinese real estate related investments. More →