Well, now we've heard it from the horse's mouth. Chinese leaders state that their economy has assumed bubble proportions:
This is in the context of further policy restrictions on lending to real estate developers. China is trying to let the air out of this bubble slowly. Good luck with that. I'm just glad I trimmed my FXI holdings this month.
Nota bene: Anthony J. Alfidi is long FXI (with covered calls) at the time this post was published.
“We have to closely monitor China’s asset bubbles,” Liu Mingkang, chairman of the China Banking Regulatory Commission, said yesterday at a conference in Beijing. Property prices have changed “quite a lot in the past five years,” he said.
This is in the context of further policy restrictions on lending to real estate developers. China is trying to let the air out of this bubble slowly. Good luck with that. I'm just glad I trimmed my FXI holdings this month.
Nota bene: Anthony J. Alfidi is long FXI (with covered calls) at the time this post was published.
