BL>BOJ’s Shirakawa Sees Chinese Bubble Risk as Economy Strengthens
By Tatsuo Ito
June 18 (Bloomberg) -- Bank of Japan Governor Masaaki Shirakawa told policy makers today that China’s strengthening recovery is spurring concern that the economy is in a bubble, a Cabinet Office official said.
Shirakawa made the remarks to Cabinet members who gathered in Tokyo today to discuss the government’s economic assessment, Keisuke Tsumura, a parliamentary secretary at the Cabinet Office who was at the meeting, said at a press conference.
China, the fastest-growing major economy, has been driving the global recovery. Exports jumped the most in six years in May, property prices rose at a near-record pace and inflation jumped to the highest in 19 months.
Shirakawa said Chinese authorities are addressing the risk of overheating, according to Tsumura. The central bank governor spoke in response to a question by Chief Cabinet Secretary Yoshito Sengoku.
Chinese officials may introduce a trial real-estate tax after already tightening sales rules for developers, raising some down-payment requirements and restricting loans for multiple-home buyers, according to state media.
To contact the reporter on this story: Tatsuo Ito in Tokyo at tito2@bloomberg.net
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