MacroScope

China housing bubble will pop in second half of 2013: Forensic Asia

By Reuters Staff
March 12, 2013

The Great China crash that many had predicted last year never came. But massive overinvestment in the property sector has led to a bubble that will eventually come tumbling down, Gillem Tulloch, founder and managing director of Forensic Asia, tells Reuters Insider.

I’ve never come across a government that’s managed to deflate a bubble gradually. What will likely happen is that confidence will suddenly go, and that, yes, the bubble will pop.

We do think the bubble will pop in the second half of the year once they stop injecting ridiculous amounts of credit into the economy.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/