Professor He Keng, who is a National People’s Congress Standing Committee member, Vice Chairman of Congress Finance and Economy Committee, and Chairman of China Statistical Society of Education, recently commented that he could not afford an apartment based on his salary. The professor pointed out that there is a bubble in the Chinese real estate market, which is primarily caused by government speculation on both land and housing. He believes that local governments and some “experts” favor the existence of the bubble, because it has brought them profit. He also believes that sooner or later the price will drop.
Source: Global Times, December 15, 2009