Expert warns of asset bubbles

HONG KONG: China is among the emerging markets facing risks of property and commodity market bubbles, central bank advisor Fan Gang said, joining officials from the region in expressing concern about surging asset prices.

A "double-digit" economic growth rate wouldn't be good for China, Fan, who heads the National Institute of Economic Research, said at a business conference in Hong Kong yesterday. Chinese gross domestic product may be able to climb 8 percent to 9 percent next year, he also said.

Fan is the latest voice to indicate the seeds of the next financial crisis may be being laid in Asia in the wake of liquidity injections by the world's central banks. China's government has encouraged a $1.3 trillion credit boom this year, helping growth accelerate while at the same time aiding an 81 percent climb in the Shanghai Composite Index of stocks.