China policy moves risk property price bubble: PBOC Adviser
BEIJING: China's monetary policies have encouraged investors to pour money into real estate, inflating prices in cities such as Beijing, Shanghai and Shenzhen and increasing the risk that bubbles could form, central bank policy adviser Bai Chongen said in an interview. At the same time, smaller property markets are struggling with excess inventory, making it difficult to craft a unified policy response and requiring careful coordination with fiscal measures, he said Wednesday on the sidelines of a joint symposium hosted by the People's Bank of China and the Federal Reserve Bank of New York in Hangzhou. "I can't say whether there are bubbles right now, but we're worried about such a problem," said Bai, an economics professor at Tsinghua University in Beijing. Government goals to cut oversupply in smaller cities and controlling the bubble in bigger ones "are contradictory," he said. China has sought to balance sustaining economic growth while controlling capital outflows and managing the yuan and stock markets.