- China's economic growth has been powered by investment instead of consumption, leading investors to question if this is sustainable over the long run.
- Property, stocks and the banking sector are potential sources of financial instability if the investment "bubble" bursts. Yet evidence of overpricing in these sectors are far from clear.
- Property prices are starting already to moderate in most of China's major cities.
- Chinese stocks are still trading below 2007 peak levels and mainland banks are priced at lower price to book valuations relative to Hong Kong peers.