IMF sees little China asset bubble risk

The senior economist of the International Monetary Fund said that China does not face a serious risk of asset bubbles, the Wall Street Journal reported. Jörg Decressin said China nonetheless has "localized" problems. The IMF said global economic growth in 2010 would be strongest in Asia, and estimated that China would reach 10% growth this year; robust domestic demand would allow the Beijing to reduce stimulus measures. Decressin said that a rapid rise in inflows of funds from overseas might force countries like China to reduce stimulus still further while tightening controls on capital inflows.