Young: China faces inflation and property bubble

China faces significant problems as inflation and property prices look set to form a bubble, says Hugh Young at Aberdeen Asset Management.

The firm's managing director of Asia says the combination of inflation and interest rates both "bubbled away" last year, although were fairly well masked in most countries. He says although inflation in China looks low on the surface, with electricity usage and other factors, it is more like 10%. "With strong growth, it is not surprising we have inflation effects; Asia has to push up interest rates quite a bit further." He adds "bubbly property prices" is another major issue for China. "More sophisticated countries have tried to attack this with higher interest rates, whereas China...