A legacy of torrid credit growth and surging property prices puts China at a 60% risk of a bank...


A legacy of torrid credit growth and surging property prices puts China at a 60% risk of a bank crisis by 2013, says Fitch. According to Richard Fox, a bursting real estate bubble will put "holes in bank balance sheets." The Hang Seng Finance Index brushes off concern, +1.5% last night.

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Comments (2)
  • tigersam
    , contributor
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    Richard Fox,

     

    Learn Chinse first then talk. You are clueless.
    8 Mar 2011, 12:19 PM Reply Like
  • Art Trader
    , contributor
    Comments (120) | Send Message
     
    Perfect logic, and a perfect cover - the frothy statistics all make sense in Chinese. Sure, the numbers don't translate perfectly. No there is no massive oversupply of unoccupied, US real estate bubble mimicking, highly speculative housing for the one-child policy generation workers entering the workforce and hoping to marry (but as they say - no house, no wife). Housing always goes up in China (Yeah, when you could have 8 children). Maybe this won't all come tumbling down next week. But this, paired with the massive increase in the Chinese money supply makes a very good case for sending students abroad for undergrad or even high school ASAP. Put those RMB to work before the other assets crash plus more job opportunities in the states. Chinese international students in the US - up 30% last academic year. Coincidence? I think not.
    10 Mar 2011, 09:24 AM Reply Like
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