Irrational Chinese investors could shake global markets

Professor Shujie Yao, professor of economics and head of the School of Contemporary Chinese Studies at the University of Nottingham, explains how the sharp end of Chinese speculation could impact on UK investors.

Aside from state-run lotteries, gambling remains illegal in China. The lure of mountainous tax revenues cannot shake the authorities’ belief that the legalisation of betting would rock economic and social stability. Property One look at the behaviour of China’s property investors and their fears have solid foundations. Despite a series of government measures to cool the market, the inexorable march skyward of house prices in Chinese cities has continued. According to the Wall Street Journal, the average price of a property in Beijing is $250,000, meaning the average resident faces 5...