A worker stands near a crane at a construction site for a residential development on the outskirts of Shanghai, China, on March 14. China’s home prices grew at the fastest pace in six months in February. Photo: Bloomberg A worker stands near a crane at a construction site for a residential development on the outskirts of Shanghai, China, on March 14. China’s home prices grew at the fastest pace in six months in February. Photo: Bloomberg
A worker stands near a crane at a construction site for a residential development on the outskirts of Shanghai, China, on March 14. China’s home prices grew at the fastest pace in six months in February. Photo: Bloomberg
Andy Xie
Opinion

Opinion

The View by Andy Xie

Why China is cooling, not deflating, the property market bubble

  • Beijing depends on China’s property bubble for revenue and has been managing it by keeping a lid on inflation
  • But the yuan’s soft peg to the dollar means Washington’s decisions – and addiction to stimulus – have an impact on China’s asset prices

A worker stands near a crane at a construction site for a residential development on the outskirts of Shanghai, China, on March 14. China’s home prices grew at the fastest pace in six months in February. Photo: Bloomberg A worker stands near a crane at a construction site for a residential development on the outskirts of Shanghai, China, on March 14. China’s home prices grew at the fastest pace in six months in February. Photo: Bloomberg
A worker stands near a crane at a construction site for a residential development on the outskirts of Shanghai, China, on March 14. China’s home prices grew at the fastest pace in six months in February. Photo: Bloomberg
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Andy Xie

Andy Xie

Dr Andy Xie is a Shanghai-based independent economist specialising in China and Asia, and writes, speaks and consults on global economics and financial markets. He joined Morgan Stanley in 1997 and was managing director and head of the firm’s Asia-Pacific economics team until 2006. Prior to that he spent two years with Macquarie Bank in Singapore, where he was an associate director in corporate finance. He also spent five years as an economist with the World Bank. He was voted one of the 50 most influential persons in finance by Bloomberg magazine in 2013.