Real Estate Bubble

Since China's stock market was created in 1992, its price-earnings multiple has fallen from about 100 times to 20 times. Photo: Reuters

Letting the air out of the bubbles

Despite the familiar refrain from analysts these last few years, China's real estate and credit bubbles have not burst. While I, too, am worried, I have not been brave enough to venture a prediction until now: I think the bubble will gradually deflate over a decade or two, rather than burst dramatically.