Fears of a bubble building in China's property markets were debunked by Stephen Roach, senior fellow at Yale University, as investors become increasingly concerned over the country's rising property prices.
According to the former non-executive chairman of Morgan Stanley Asia, China's residential property market represents only around 5 percent of the country's gross domestic product (GDP), thus if things go bad it will not devastate the economy.
(Read More: What the US Can Learn From China: Stephen Roach)
"Of that 5 percent [GDP], only 2 to 3 percent is at risk...Does that sound like an economy that will be strangled by a housing bubble?" he told CNBC. "This is not going to bring China down, and unlike the U.S., which allows bubbles to develop, the Chinese are very aggressive in trying to control that kind of thing."