My knowledge of what's happening in China is very slight. But from what I've been reading over the last few months (like this today), it sounds worrying.
Others may have noticed this parallel, but just in case you missed it, I'm going to make it.
Compare China vs the US to Spain or Ireland vs Germany, with a lag of about 3 years. The China/US game is about 3 years behind the Eurozone game.
China has a (roughly) fixed exchange rate with the US, just as Spain and Ireland have an (exactly) fixed exchange rate with Germany. The monetary policy that was roughly right (well, not really right at all, but definitely not too loose) for the US was too loose for China. Before the recession, 3 years ago, the monetary policy that was roughly right for Germany was too loose for Spain and Ireland. So China, Spain, and Ireland had a credit boom and rising asset prices, especially house prices.
It all ended badly in Spain and Ireland. It now looks like it might end the same way in China, with a 3 year lag. Fixed exchange rates seem to do this sort of thing. Spain and Ireland used to wish they could revalue their currencies against Germany. They now wish they could devalue their currencies against Germany. China failed to revalue its currency against the US, when it should have done. I wonder if it will soon want to devalue its currency against the US?