Chinese investment in real estate is worth many billions of dollars; the exact amount is hard to assess as many of the loans are from outside the banking system. This is where the potential problem could be.

Some analysts are questioning how good the loans are and the impact that it could have on international real estate if a high number go bad.

While the main focus of Chinese investment in property has been in London, Chicago and Sydney; Canada is another favourite market for Asian-Pacific investment. The concern is that if bad loans end in default, it could have serious repercussions for our housing market.

An MP in Australia is calling for the situation to be looked in to more closely and the Chinese authorities are trying to tighten regulations on the so called shadow-banking market.

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