| One of the issues concerning China has always been the investment into property. For the past two decades, local and regional governments have used property investment to increase their GDP figures in order to meet Central Government targets.
However, this has led to unhealthy reliance on property as a provider of growth, and many instances of corruption and collusion between officials and developers. China now has a massive property bank, spread across the nation, and the on balance sheet recorded assets of local governments have dictated that these have pushed prices in China up to astronomic levels.............................................Full Article: Source
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