atans1

HoHoHo, Soros bearish on China

In Banks, China, Temasek on 25/04/2016 at 10:06 am

After StanChart, thetr are three other Chinese other monkees on Temasek’s back. Remember we have big stakes in three of China’s big 4 banks.

As China’s Growth Slows, Banks Feel the Strain of Bad Debt Chinese lenders feel rising pain from souring loans in troubled industries – even as they face pressure to keep local companies afloat.

NYT Dealbook

Soros bearish on China

George Soros is warning markets that China’s financial system is at risk and the rise in credit will be the downfall for world’s second biggest economy.

Speaking at an Asia Society event in New York on Wednesday, Soros said the similarities between the credit markets in China “eerily resemble” to those of the United States in 2007 before the financial crisis.

Recent stimulus packages in China have seen sharp rises in asset prices – namely in the housing and construction sector, but Soros believes these have been fueled by excessive lending to underperforming industries.

“Most of the money that banks are supplying [in China] is needed to keep bad debts and loss-making enterprises alive,” Soros said.

Read more: George Soros Worried about China’s Financial System | Investopedia http://www.investopedia.com/articles/investing/042116/george-soros-worried-about-chinas-financial-system.asp#ixzz46i1T5WmU
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  1. Plenty of chatter that China is taking the path of the Japs in propping up failed banks & large corporations creating a zombified economy with zombie companies. Japs did it in the 1990s to preserve social cohesion and the old psyche (now largely gone) of lifetime employment & lifetime loyalty between large corporations & employees. China may have to do it in order to prevent social chaos & overthrow of Chinese Communist Party.

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