China Real Estate Bubble

One of the biggest concerns for the market entering the new year is China's real estate bubble and when it will burst.

Many top hedge fund names such as Jim Chanos are openly shorting businesses related to Chinese real estate, and others like Hugh Hendry are buying credit insurance in Japanese companies that export goods to China for real estate production.

As China continues to tighten monetary policy and raise interest rates to dampen inflation, it could provide the nudge needed to topple real estate prices across the board.  This would have a major impact on business around the world, and would likely bring a correction to the entire commodities market.

Bloomberg today ran a segment on one of China's ghost malls: