Central Banking

PBOC issues property bubble warning

The People's Bank of China warned Monday 15 August that China faces a potential property "bubble" which could leave banks with huge losses if it burst.

"Property price inflation can easily result in prices soaring out of line with real values and thus cause a bubble," said the report, posted late Monday 15 August on the website of the People's Bank of China.

"Once the bubble bursts, it can cause a contraction in the real estate sector and significant losses for banks," the report said.

In a weekend

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