Real estate market 'overheating' (Apr 14)

SHANGHAI - China's real-estate market is overheating and investors should stay cautious on developers after the shares fell the most in the main equities index this year, according to Nomura Asset Management Hong Kong Ltd.

"In the first-tier cities, property markets are obviously overheating," Shen Xiaomin, portfolio manager at Nomura Asset, said on Monday.

"There is too much money in the economy," Shen said.

Property prices in China rose at the fastest pace in almost two years in February, spurring warnings of asset bubbles. Hedge fund manager James Chanos said last week that China's land market is a bubble that may burst as early as this year.

For more reading: http://www.chinadaily.com.cn/business/2010-04/13/content_9720800.htm; http://www.chinadaily.com.cn/bizchina/2010-04/19/content_9745585.htm