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China's Housing Market in 'Mother of all Bubbles'

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China's housing market is experiencing the 'mother of all bubbles', and a property slump will hurt everything from Australian mining firms to Europe's luxury-goods makers, according to GMO.

'We are very concerned' about China's economy, Peter Chiappinelli, a portfolio strategist for asset allocation at Boston-based GMO, said at the Bloomberg Link Portfolio Manager Mash-Up Conference in New York. 'All bubbles pop eventually.'

GMO, which oversees USD 97 billion in assets, is betting that shares of Chinese real-estate developers, construction companies and cement producers will decline, said Chiappinelli. GMO is also betting against Australian mining companies, German carmaker BMW and British luxury handbag maker Burberry Group PLC. The companies have been benefiting from China's housing boom and expanding middle class over the past years and are 'very exposed to' a China slowdown, he said.

(Read the full story in Bloomberg.com)

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