Bank of Japan Gov. Haruhiko Kuroda played down the risk of a crisis from the troubles in China’s real estate market that have been exposed by the downfall of developer China Evergrande Group.
"China’s real-estate problem is somewhat different from the problem we faced” in Japan in the late 1980s and early 1990s, Kuroda said in a virtual panel discussion at a forum hosted by the European Central Bank Wednesday. "Extremely speculative investment in the real estate market does not appear to be the case in the Chinese case,” he said.
While Chinese authorities are taking measures to contain "excessive expansion of real estate activities” after a long period of growth, "at this stage, it’s quite unlikely that this problem would reverberate and affect the entire Chinese real-estate market or even the entire Chinese economy,” Kuroda said.