On July 20, China broke ground on the Sky City project in Changsha city.

Andrew Lawrence – Director of real estate research in the China – Hong Kong region at CIMB Financial Services Group (Malaysia) said: `For the past 150 years, Skyscraper Index has always shown the connection between the

Sky City will be the tallest tower in the world when completed.

In the US, the Chrysler Building was completed on October 23, 1929, making it the tallest tower in the world at that time with 319m.

In March 1996, Malaysia’s Petronas Twin Towers were completed and are also the tallest towers in the world at 452m.

In Dubai, the 828m Burj Khalifa tower was completed in October 2009.

Lawrence believes that both the construction boom and the financial storm are closely linked to credit growth.

At that time, to prevent the impact of the financial crisis, China launched many monetary easing measures to increase liquidity and investment in the economy.

`China will build up to 40% of the world’s skyscrapers in the next four years. It’s clear they are creating a construction bubble,` Lawrence said.

Art Gensler – founder of Gensler Architecture and Design Group commented: `I think they just want something to symbolize. And Shanghai Tower will be a symbol of China.`

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However, analysts are still increasingly concerned about the consequences if the construction bubble in China bursts.

Economic data released last month showed that the country’s GDP grew only 7.5% in the second quarter, the lowest in 9 months, according to China’s General Statistics Office.