Bloomberg provides snippets of an interview with BofA Merrill Lynch analyst David Cui in which Cui warns that 2010 will feature a massive asset bubble in China:
“Next year could be the year we see a full-blown asset bubble…We’re likely to see massive savings migration as we head into real negative interest-rate territory,” where people “save less, spend more and invest more…”
….Asset prices will gain even with the anti-speculative policies, Cui said, as he expects the government to maintain a “fairly loose” monetary policy unless the consumer price index “threatens to go out of hand.”