Real estate is another area of concern. On one of my recent visits, a Chinese professor told me that everyone in China has two homes or more, because houses are cheap, interest on savings accounts is low, and there are no property or capital gains taxes. Though he was obviously exaggerating, it does highlight the attractiveness of property, in light of the high household saving rate and limits on alternative investment opportunities. In response to bubble concerns, China’s government has been working since 2010 to bring down real estate prices by setting limits on bank lending and raising down-payment requirements for mortgages. Despite these efforts, recent data show China’s property prices continuing to rise. The resilience of housing prices in the face of concerted policy efforts adds to the worry that a bubble may be forming.