This past semester in my Real Estate Finance class at the Owen School of Vanderbilt, I was dissecting the housing crash in the United States.  One of the charts showed the run up in values in different markets around the country.  One of my Chinese students offered that they were experiencing the same thing in Beijing – his house, he said, had appreciated 50% in the last six months.  Here’s more evidence that a bubble is being inflated:

(From SF Gate) “An auction of land in Beijing was cancelled after bidding exceeded a price ceiling set for the lot as the Chinese government expands efforts to rein in the nation’s property market.”

There’s more: “Imagine a seller refuses your business because he thinks you are paying too much for his products?” Bank of America- Merrill Lynch analysts led by David Cui wrote in a report distributed today. “It demonstrates the type of pressure the central government is putting on local officials to get the property market right this time; this increases the risk of potential overshooting in the property market crackdown.”

According to Google Translate, the word for bubble in Chinese is 泡沫  or “paomo.”