Huang Guangyu trial and real estate dilemma

Huang Guangyu, the founder of home electronics chain GOME, was China’s richest man, with a fortune of over 6 billion dollars in 2006, according to Forbes. However, the multi-billionaire was detained in November 2008 on suspicion of bribery, insider trading, and money laundering. The dragnet in the investigation leading up to the trial has already widened, and has implicated a number of high-ranking cadres in the Ministry of Public Security's white-collar crimes division. Is Huang’s case a warning to the Chinese emerging wealthy class? What does Huang's trial mean for rule of law in China?  Whether they own property or not, there is nothing that people across China are talking about more than real estate prices. Property prices in 70 cities in China rose by a whopping 11.7% just in March 2010. Records show that new real estate loans grew to over 1.4 trillion dollars in 2009. People all over China talk about the phenomenon of “house slave” — people who are enslaved to their mortgage, and working only to pay off their homes. What dilemma does China face over the soaring property prices? In the mean time, Beijing issues sharp new policies to curb speculation. Do the government's actions portend the collapse of the real estate bubble? Joining host Kaiser Kuo this week are Gady Epstein, Beijing bureau chief for Forbes magazine, and Sinica regulars Bill Bishop and Will Moss. Bill is a tech entrepreneur in Beijing who blogs regularly on politics and economic issues at Sinocism.com. Will is a public relations expert in China and the force behind the popular imagethief.com. References: The Curse of Forbes, by Gady Epstein Rule of Law Implications of Huang Guangyu Trial?, by Stan Abrams  How China's Property Bubble Works, by Andy Xie