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If China’s Property Bubble Bursts….

The cooling of China’s real estate sector is good for the economy. But the government is right to be worried about the social consequences of the bubble bursting.

In October, Beijing announced that four city and provincial governments – Shanghai, Shenzhen, Zhejiang and Guangdong – would be allowed to start issuing bonds for the first time in China’s history. Zhejiang is expected to issue $8 billion yuan in bonds, including half three-year bonds and half five-year bonds. The proceeds are intended to fund infrastructure projects already under construction.

But why now? What was the impetus for this unusual step?

http://the-diplomat….-bubble-bursts/

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