H.W.

The Next Credit Crisis Will Originate in China

May i ask how do we define credit crunch? What the US credit crunch is experiencing now is not only the subprime mortgage defaults which are measured by only about 1% of all mortages, but worse, the financial innovation, the financial engineering this has created by chopping and packaging into CDOs, SIVs, ABCPs, and maybe more others to be discovered in the months to go.
Do you think China's "limited" potential "NPL"s or "public debts" were capable of expanding into financial innovations like what the US has created to form a crunch like the US financial did?
Public debts are covered by China's vast reserves from surpluses, not to mention, with pegged collaterals. The net losses will be covered, provided that there are no ABCP's, SIV's or CDO's Chinese banks had ventured into, when the giant was still hibernating!

The Next Credit Crisis Will Originate in China

haha, i hope that this is not another kind of retaliation or negative propaganda?! or like after ADB or World Bank disclosed reports sometime in latter 2007 about China's 40% discounted "economic might" !!
all these write-ups will be valued substantially given objective data from "unprejudiced and professional entities". we will be more than glad to scrutinize into all these potential NPLs and its insolvency ratio from "long time" loan releases....