The head of state-owned conglomerate China Everbright Holdings has warned of the dangers of rising property prices on the mainland and said that because of market volatility the group would be cautious about investing in the sector this year.
Price rises in some places were "frightening", chief executive Chen Shuang said in a rare warning by a senior mainland property executive.
He believes a bubble exists in the mainland housing market, and that an interest rate increase will probably be announced by the People's Bank of China earlier than the market consensus of the third quarter. He also says measures taken so far by the central government to tighten monetary policy are essential given how much liquidity is in the system.
South China Morning Post