> I think the fundamental reason this is happening is that the chinese do not trust their own gov't enough to store their assets in a more liquid form. Not rea

> I think the fundamental reason this is happening is that the chinese do not trust their own gov't enough to store their assets in a more liquid form. Not really, it is as simple as "It is more profitable and equally risk-free to buy house than letting money rot in the bank." People are still rushing to buy whatever government bonds as soon as they are available, because they pay good interests and are less risky. People in China are driven by pragmatism more than loyalty or distrust in the government.