By Larry Elliott
The Guardian Sunday 3
November 2013
Beijing is making prepartions to let its money off the
leash, and the repercussions will be felt everywhere
It's a long way from Beijing to Belgravia but London's
upmarket estate agents would be well advised to keep a close eye on
developments in China over the next 10 days. The price of a mansion in London's
more fashionable districts is rising fast. Cash buyers from overseas have
snapped up houses with little or no regard of the cost, creating a property
microclimate divorced from the rest of the market.
The Bank of England is keeping tabs on the boom, concerned
that the flood of foreign cash pushing up the price of mansions could – if left
unchecked – herald the start of the next bubble.
Well, you ain't seen nothing yet. The freeing up of China's
economy over the past 35 years has been methodical. First it was agriculture.
Then it was industry. Now, the next phase of liberalisation planned by the
ruling cadre of the Communist party includes finance.
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