China’s economic growth in recent decades has made it a global power, but Chinese billionaire Wang Jianlin, who made his fortune in the country’s real estate market, is now warning that it’s reached a tipping point.
Jianlin, the richest man in China according to Forbes, told CNNMoney earlier this week that the county's real estate market is the “biggest bubble in history.”
While prices keep rising in major cities like Shanghai, thousands of smaller cities are seeing prices fall and have a huge number of empty properties.
"The problem is the economy hasn't bottomed out," Wang said. "If we remove leverage too fast, the economy may suffer further. So we'll have to wait until the economy is back on the track of rebounding -- that's when we gradually reduce leverage and debts."
He says, though, that he's not worried about the prospect of a "hard landing" -- a sudden and catastrophic collapse in economic growth.