Growing international fears about looming economic collapse in China are misplaced, and any bubbles in the economy are limited and will be easily managed, according to one of the country's richest and most influential entrepreneurs.

“China's economy is still growing rapidly so the risks are manageable and the overall situation is relatively healthy,” said Liu Yonghao, a former pig farmer who founded one of the country's largest private conglomerates and is the largest shareholder of Minsheng Bank, China's first and largest privately owned bank.

“While there may be some bubbles, the situation is different in different industries,” Mr Liu told the Financial Times yesterday. “[Bubbles] may exist but they are not especially serious.”

He rejected recent comparisons between China and Dubai's real estate markets made by commentators such as James Chanos, the hedge fund manager. Kenneth Rogoff, former research director at the International Monetary Fund, and Marc Faber, an independent analyst, famous for predicting the Asian financial crisis, have also sounded the alarm.

Mr Liu said most of China was not experiencing a property bubble. “That kind of talk is just plain wrong. Dubai doesn't have any industry, manufacturing or agricultural industries. It only has real estate and tourism, and relies on massive [external] borrowing,” he said. “China doesn't borrow money from anyone else. It lends money to others, like the US.”

Michael Geoghegan, chief executive of HSBC, this week told the FT he was also sceptical about the risk of a property bubble. “I believe these fears are overblown as many property purchases have involved a large cash payment,” he said.

Observers say global sentiment towards China's economy and asset markets has turned from exuberance a few months ago to alarm over the potential fallout from last year's credit expansion.