I've listened interview with two popular investors, Altony Bolton and James Chanos.
International funds forecast that economic growth in China will reach 10% in this year and the economy of China can overtake Japan as the second biggest economy in the world with the biggest stock market.
According to Altony Bolton, there are power shifts in the intentions of the west investors. investments go to the East. If the Chinese economy becomes the biggest, it will be the proof of that.
But there is the other site of economic growth in China. Problem is the emergence of red-hot property markets which can burst like bubbles. Although the government is cutting on landing, investors think that China is heading for fall.
According to James Chanos, demand on property market can not outstrip supply, The prices are so high that people even in urban areas can not afford to buy residential property. Also he has said that the government "forces" to buy fixed assets to reach the growth.
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