Bubble Risks Test China’s Commitment to No Sharp Turn in Policy
- Prices of homes to commodities are surging, prompting concern
- The central bank has so far avoided raising interest rates
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Despite Beijing’s best efforts, asset bubbles are forming in China.
Home prices are soaring, prompting officials to revive the idea of a national property tax. A surge in raw material prices spurred pledges to increase domestic supply, toughen market oversight, and crack down on speculation and hoarding.