China will slow lending, in a move to curtail bubbles.

The Chinese authorities signaled Wednesday that bank lending would slow significantly this year and reportedly instructed some banks to curb loans — the latest in a series of moves designed to forestall inflation and stave off bubbles in the stock and property markets.

Liu Mingkang, chairman of the China Banking Regulatory Commission, said he expected Chinese banks to extend loans totaling about 7.5 trillion renminbi, or $1.1 trillion — down nearly 22 percent from the record 9.6 trillion renminbi lent last year.

China reports GDP Thursday and expect another blow out, estimates expect 10.8%.

The news that China is demanding banks curb lending sent reverberations throughout the global stock markets. Why am I posting this story? Because it shows how now China's economy and economic policy influences the entire globe. The U.S. stock market the most since November.

So, is the China property bubble real? According to the link, overall property rose 75.5% in one year, residential 80%. In December, prices increased 8%.

Now Goldman Sachs is (ahem) monitoring China, Hong Kong, for asset bubbles.

But the most interesting thing is how China is trying to rein in lending, while during the housing bubble in the U.S., we had Presidents glorify the increase in home ownership and denial to the point of Economic Armageddon.