China’s property bubble a social risk, says Chinese economist
China faces the risk of youth disenchantment as property prices rise beyond their reach, a renowned Chinese economist said Friday.
“In a regular country, wealth should be concentrated in the financial markets, not fixed assets,” said Renmin University of China Vice President Wu Xiaoqiu at a media interview at the Boao Forum in the province of Hainan.
He highlighted the risks from the current property bubble in China, such as negative asset values if prices tank.
More importantly, the social risks that come from the property bubble in the form of youth disenchantment with not being to afford a home will be damaging, he said.