Counterpoint To The China-Bubble Hypothesis

Dian L. Chu has written a rebuttal to those who think that a spurt in lending for PRC real estate is symptomatic of a bubble economy. Although she concedes that real estate in China is very expensive, she points out that the sector is less inportant in the PRC than in the United States.

She also says that real estate and gold are the two most favored hard assets for Chinese savers. If the real-estate boom is eased or clamped down upon, gold should benefit because it's a substitute for the former.