Deutsche Bank Warns: Chinese Property bubble is getting bigger

The Chinese Property bubble is only growing and there is little the Government can do, argues one big bank

Despite the risks posed to China’s financial system by the country’s housing market, policymakers are likely to tolerate the bubble rather than introducing further measures to cool the market, that’s the key takeaway from a Deutsche Bank special report on China’s property market. China’s property market has become a key driver of growth and fiscal expansion in recent years, and as a result, policymakers are unlikely to move to constrict this vital pillar of the economy.

Indeed, according to Deutsche’s analysts Zhiwei Zhang and Li Zeng, China’s booming property market has created...