A bursting property bubble could stall China's economic recovery, warns investors and economists interviewed by the Wall Street Journal.
The Journal notes that over the past week, China has implemented measures aimed at cracking down on property speculators after the country reported an 11.7% rise in urban home prices last month from a year earlier, its fastest gain in five years.
"This is the critical policy point that finally cracks the Chinese property market," Morgan Stanley China strategist Jerry Lou told the Journal.
Comparing conditions in Chinese cities to Dubai and Miami, short-seller James Chanos describes China's state as a world-class propery bubble that could unravel later this year, says the Post. Chanos argues that China's lending spree has put too much money into the property market, raising housing prices.