Property prices in China The Higher, Investors and Bankers Worried

Many investors and bankers more concerned with property prices continuing to rise in major cities of China. They were afraid, this property price bubble will pop the next crisis.Shenzhen, China

So it is with the Government of China. On Sunday (10/1/10), China's Cabinet said, would monitor the flow of capital to stop the speculation in the property market in China. The government also increased the down payment on a house. Every family that China will buy a second home, must submit a deposit of at least 40 percent.

For investors, this bubble was a warning. Because of low interest rates, property prices in Shanghai and Beijing more than doubled in less than four years.

Most buyers expect that China's house prices rose from day per day. As a result, they kept trying to buy new assets, but it was beyond their means. A broker said, buyers typically make a false payroll to get bank loans.

Some economists and bankers fear, a phenomenon in China this will trigger a crisis such as occurred in Japan in the late 1980s and the United States in 2009. Big bubble housing loans, ended with the destruction, failed banks and a slow recovery.