Pettis Not Terribly Worried About Chinese Real Estate Prices

Known in the past for being bearish on China, Peking University finance professor Michael Pettis has been fairly optimistic of late. He has argued that China is mostly likely going to have a long landing, shedding 100 – 150 bps of growth per year while transferring wealth back to households, and that all Beijing has to do now is deliver on promised policy reform to prevent a crash. As concerns mount about a Chinese real estate bubble, Pettis explains that falling housing prices aren’t nearly as dangerous as people seem to think. “The danger is that a decline in property…