ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

China has yet to stop its runaway property bubble

Capital controls and easy money keep investors tied to domestic real estate

Price caps on new condos have led to a supply squeeze in the southern Chinese city of Nanjing, pushing up the cost of existing units. (Photo by Issaku Harada)

BEIJING -- Wu Jianying, a company employee in Beijing, visited her father's hometown in Hebei Province, in mid-March. In Wen'an County, a one-and-a-half-hour drive south from the capital, she heard a strange rumor: The government might soon place restrictions on property purchases. In such a rural town, she wondered.

On April 1, China Central Television, the state TV broadcaster, reported in its evening news that the Communist Party and the State Council had decided to build a large city in Hebei Province. The new city, Xiongan New Area, would be created in an area adjacent to Wen'an.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more