Economists warn of housing bubbles

World Bank sees less of a threat from consumer inflation

World Bank economists yesterday warned about the risks of asset bubbles in China even as the government tries to hold back excessive lending and keep prices stable.

Asset price inflation, or increases in housing prices in particular, is potentially "very dangerous" for China because they are self-reinforcing, made possible by "very cheap credit", said Hans Timmer, director of the development prospects group at World Bank.