More on the comments out of China yesterday on a bubble forming domestically in its real estate market

The comments from Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, at a press conference in Beijing on March 2 were cited as a reason for the sell off in risk during the session Asia yesterday.

I wrote in the wrap that the chronology did not make sense. Nevertheless, the comment are noteworthy and worth following up on.

Thankfully Chinese media, Caixin, has done just that, with an extended pice posted:

• Loose Monetary and Fiscal Policy Overseas Poses a Risk to China, Head of Top Banking Watchdog Says

(may be gated)

• we are very worried about the financial markets, especially that the bubble in foreign financial assets could one day burst
• forecast that China's lending rates will likely go up this year.
• also warned about a bubble forming domestically in China's real estate market