Is there a bubble in China’s construction sector? Is the property price over stretched in China? The answer seems to be certain. A lot of people view China’s property sector as a time bomb that will explode sooner or later (Click here for an interview with Jim Chanos, who is very bearish on China). However, the bears have been repeatedly wrong in the past few years. The above chart shows that since 2002, China’s property and construction loans have been above 40% on average. To be fair, other emerging economies also went through similar period during their booming days. However, it seems that such fast expansion never sustained more than 10 years. Whether China can break this historical pattern remains to be seen.