For years Federal Reserve Chairman Ben Bernanke has been telling Americans that regulation can stem the growth of bubbles in an economy. China’s real-estate sector looks to be disproving that theory in real time. Just one more item on the long list of those about which Dr. Bernanke is wrong.

China’s real-estate sector showed strength in the first half of the year amid solid housing demand, despite government controls on the market and slowing economic growth.

While the buoyancy in the housing market could lead to tighter market curbs in the months ahead, analysts said that for now, growth levels were within tolerable levels.

Read more about China’s failing attempt to regulate away a bubble in real estate prices here.