China Property Market on the verge of collapse

China Property Market on the verge of collapse ; Chinese property market was heading for collapse. This condition will be hitting the country's banking system is that the Bamboo Curtain. "You begin to see that the property to collapse and will hit the banking system," said Kenneth Rogoff, Professor at Harvard University and former head economist for the IMF told Bloomberg Television in Hong Kong today.

Global economic recovery is running very slow given the danger signal would come back into recession. And, Chinese is currently the world leader for global economic recovery. According to Rogoff, Chinese government officials had indeed been having a lot of ways with competent management to prevent the collapse of the property market. However, Rogoff rate it is not easy to do.

Chinese authorities this year have been trying to reduce its economic growth at the level of 9.11 percent in the first quarter of this year. This is to reduce speculation in the property market.

Central Bank has also informed the seller of a property to further increase their financial reserves. Central Bank also cut 22 percent of the target bank's credit growth this year to 7.5 trillion yuan or U.S. $ 1.1 trillion.

These efforts contribute memerosotkan precisely at the time of the sale of real estate prices climbed. Value of property sales fell 25 percent in May compared to April. Goldman Sachs last week cut its forecast has China's economic growth this year from 11.4 percent to 10.1 percent. This is as a result of monetary tightening measures by the Chinese.

However, monetary tightening measures, according to Rogoff, as it is not realistic to expect China to continue the growth of exports to various parts of the world as was the case today. "It is not possible. They must sharpen its strategy on the back of economic growth. "