The real bubble behind China's selloff

A residential construction site in Beijing, China.
Brent Lewin | Bloomberg | Getty Images
A residential construction site in Beijing, China.

A real estate bubble may be one of the culprits behind the Chinese stock selloff.

In the run-up to seven-year highs on the Shanghai Composite prior to its recent collapse into a bear market, some analysts attributed the rally to the diminishing attractiveness of real estate as an investment product.