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As America tries to recover from its housing bubble burst, China's housing bubble is blowing up. The latest: Chinese couples are faking divorce so they can borrow more money to buy more second and third homes, trying to seize upon rising prices.

(Photo: Creative Common)
China is in the midst of a housing bubble, and the government has initiated policies to try and slow growth of second and third home buying. But many couples are getting around the new policies by faking divorce, so they can borrow more money.

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(Photo: Creative Common)
China is in the midst of a housing bubble, and the government has initiated policies to try and slow growth of second and third home buying. But many couples are getting around the new policies by faking divorce, so they can borrow more money.

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In the effort to curb the growing housing bubble, the Chinese government has tried to initiate actions to make getting second mortgages harder. The government raised the down payment for second mortgages to make them harder to obtain, and about 40 Chinese cities have begun to limit apartment purchases to two per family, according to a story from Bloomberg.

The government, the story says, has also asked commercial banks to quit giving loans to third-time home buyers.

Chinese citizens are behaving just like Americans did when the housing bubble blew up here -- seeing housing buys as fast-appreciating assets. They want second homes, and even third homes as prices rise. And they aren't interested in the government's actions to slow their efforts.