I think the best way to play the China bubble is to go after luxury retailers in the country. For example, I found one company that you can short which basicall

I think the best way to play the China bubble is to go after luxury retailers in the country. For example, I found one company that you can short which basically imports Swiss watches that they then try to resell. Property brokers like E-House might be good shorts too, although they have secular growth since they are taking out mom & pop operators. I used to think that using Australia as a proxy, such as the AUD or some of the commodity miners would work as a means of shorting China but I'm less enthusiastic now. While there may not be demand for some of the luxury developments, there is probably adequate demand for lower level buildings. I imagine that the state owned enterprises would shift their construction projects from luxury developments to critical/needed buildings and infrastructure, potentially keeping commodity demand stable.