The recent occurrence of 'land king' activities in the first and second tier cities in China have caused to the society to worry whether China will repeat the mistakes made by Japan.

In this regards, the research team at ANBOUND Consulting is of the view that both countries have different positioning in relation to their real estate industry, which is also why the impacts of the bubble bursts on Japan differ significantly from that of China.

The real estate bubble burst will take a toll on China because all land in China is owned by the state.

Fortunately, in China, the social resources available for the government is far greater than those available to Japanese government, as of now, the Chinese government can still rely on the structural reform to mitigate the potential risk of bubbles.