Category: China Credit Crisis
The analysis published under this category are as follows.
Sunday, October 22, 2017
China and Ratings Agencies’ Double Standards / Stock-Markets / China Credit Crisis
By: Dan_Steinbock
Or why is China being penalized for its debt problem, but advanced economies aren’t?Today, rising debt is one of China’s key challenges. Recently, it led to the mainland’s rating cut by ratings agencies. Yet, many advanced economies have higher credit ratings than China, though their leverage ratios are worse.
In May 2017, Moody’s Investor Service downgraded China’s credit rating. In September, Standard & Poor’s, too, cut China’s credit rating, citing the risks from soaring debt.
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Tuesday, June 10, 2014
Warehouse “Rats” Could Ignite Chinese Credit Crisis / Stock-Markets / China Credit Crisis
By: Money_Morning
Shah Gilani writes: Everyone knows that China is the world’s largest consumer of several commodities, including copper, iron ore, and aluminum.
Everyone knows the Chinese have been stockpiling tons of these same commodities.
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Sunday, May 04, 2014
A Stampede Of Elephants In The China Shop - The Chinese Shadow Banking System / Economics / China Credit Crisis
By: Raul_I_Meijer
I’m going to take a number of different sources to paint a portrait of China. I’ll take a great series of numbers from Ambrose Evans-Pritchard, whose analysis we can all do without, and leave the analysis up to David Stockman, who goes a long way but, in my proverbial humble view, seems to be stumbling a bit towards the end. That is to say, as I’ve written before, when I look at China these days, I see a bare and basic battle for raw power, economic as well as political power, between the Chinese government and the shadow banking system it has allowed, if not encouraged, to establish and flourish, and which now has grown into a threat to the central state control that is the only model Beijing has ever either understood or been willing to apply.
Monday, March 31, 2014
Chinese Shadow Banking and Commodities / Commodities / China Credit Crisis
By: Alasdair_Macleod
The story that commodities are at the centre of China's shadow banking system has gained prominence in recent weeks. No firm evidence has been presented to confirm the scale of these activities, bearing in mind China's State Administration of Foreign Exchange (SAFE) clamped down on these activities last May (http://www.bloomberg.com/news/2013-05-23/china-rule-changes-may-halt-copper-financing-deals-goldman-says.html).
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Wednesday, March 26, 2014
Will Alibaba Destroy the World? / Stock-Markets / China Credit Crisis
By: PhilStockWorld
"The Word ends not with a bang, but a whimper."
As TS Elliot noted: "Between the idea and the reality, between the motion and the act falls the shadow." Whether or not Elliot was referring to "shadow banking" in 1925, 100 years later his words certainly ring true as "Vampire Internet Funds" like Alibaba's Yu'E Bao are draining liquidity out of China's financial system at an alarming rate.
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