GLOBAL investment institution Morgan Stanley said the Chinese real estate market has bubbles in small areas, but no housing bubbles nationwide.

　　"The housing bubbles are concentrated in small areas, mainly in Shanghai, and coastal areas of South China and East China," said Morgan Stanley's Chief Economist and Managing Director Stephen Roach during a news briefing in Shanghai on March 17.

　　In recent weeks, both the central government and Shanghai municipal government have applied a series of regulations and policies to curb the over-heated real estate market by increasing property loan interest rates and property transaction tax.

　　When asked for comments on such measures, Roach said: "Government clearly elevated the control on fixed assets and residential property. It's a pretty direct message to the speculators (in the real estate market)... but it's not clear whether it will work or not."

　　When asked whether this will influence Morgan Stanley's property business and strategies in China, Roach said the periodic bubbles wouldn't influence its business and added that the property business is the company's long-term commitment to China's development.

　　Roach said Chinese currency policy will face increasing global pressure as the US dollar continues to weaken against most major currencies and more strength will be lost against Asian currencies.

　　"The pressure on the Chinese Renminbi is not steady and likely to be growing. And the longer China waits, the tougher it will be to make Renminbi rate adjustment," said Roach.

　　The economist also expressed his confidence in a soft-landing for the Chinese economy.

　　Hu Yan