The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China’s lenders has warned.
Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China’s financial system was becoming a bigger risk for international banks. Continue reading
As reported on earlier, a pre-planned ‘financial demolition’ if you will, will soon be underway and the ripple effects remain to be seen. Stay tuned.
A shockwave is looming in China’s multi trillion dollar “shadow banking” system, with an unprecedented default only days away on a $500 million investment product sold to hundreds of people.
Staff at China’s biggest bank ICBC pushed the “Credit Equals Gold #1 Trust Product” by promising returns of 10 percent a year, far more than traditional deposits, investors say. Continue reading