According to Zhang Shugang, a well-known economist in China, China's consumption grew 15.5% over past year. On the surface, this is exactly what we needed to re-balance China's highly skewed, investment-driven economy
Further look at the data: 69% of the total consumption came from either housing or automobile purchase, with housing expenditure accounting for 55%. This is out of whack. Think about how many people were actually buying for speculation only…animal spirits and bubble show up everywhere.
This is a bubble that will eventually go bust.