After the GFC, China’s economy was the first to recover. However, there has been a large flow of capital into the asset markets rather than the real economy. To be sure, such phenomenon should be expected in the aftermath of each financial crisis when, despite indications of an economic rebound, the profitability of the real economy is not clear. Hence, investors remain hesitant, adopting a wait-and-see attitude. Therefore, a large amount of capital would flow into real estate, stock market, and other asset markets for speculation. This phenomenon has not entirely disappeared so far, leading to the formation of a bubble. If managed poorly, the bubble could burst and cause a double-dip recession. Therefore, many economists have been calling for vigilance against a double-dip recession over the past year.