« on: November 15, 2011, 08:30:29 AM »
http://www.performancetradingconcepts.com/index.php?topic=104.msg398#msg398
This is very important in my opinion.This is indicating that China is not as strong as what is said by others.China having a debt problem will occur,they are the worlds creditor,how will they not be impacted.
*China Vulnerable to Asset Bubbles, Warns IMF-Published: Tuesday, 15 Nov 2011 | 2:15 AM ET
http://www.cnbc.com/id/45298098
"China's biggest commercial banks face systemic risks if a combination of credit, property, currency and yield curve shocks that could be withstood in isolation were to occur together, the International Monetary Fund warned on Tuesday.But China can contain these dangers by freeing up financial markets to give investors, commercial banks and the central bank greater autonomy from government control, the fund said in its first-ever review of the Chinese financial system.While not predicting an imminent disaster, the IMF made clear China needed to act quickly because it is vulnerable to destabilizing asset price booms."
*BofA Sale Highlights End of Era for Foreign, China Banks -Published: Tuesday, 15 Nov 2011 | 3:23 AM ET
http://www.cnbc.com/id/45296846
Quote from: admin on December 29, 2011, 06:21:57 AM-IMPORTANT DATA/ANALYSIShttp://www.performancetradingconcepts.com/index.php?topic=20.msg379#msg379
Another indication that China is going to have a debt problem like Europe and the U.S.A
*Funds Expect Surge of Bad Loans in China-Published: Wednesday, 28 Dec 2011 | 7:19 PM ET
http://www.cnbc.com/id/45809794
" Foreign and domestic distressed debt funds expect a big supply of bad loans to come on to the market in China after at least five years in which banks largely sat on their portfolios of troubled loans.Executives at Clearwater Capital, a Hong Kong-based fund, and at Guangzhou-based Shoreline Capital say Chinese lenders must dispose of existing bad loans to prepare for a new batch of non-performing debt, stemming from the credit binge Beijing encouraged following the global financial crisis.“Now that there is a new flow of bad loans, the banks have to dispose of their legacy loan problem,” says Ben Fanger, co-founder of Shoreline. “Deals being offered to Shoreline are at prices that are lower, on average, than in recent years. We are now having meaningful dialogues again. "
" The extent to which Chinese banks deal with their problem loans provides clues to the health of the economy generally. By cleaning up their balance sheets, the Chinese banks will make room for new lending and financial experts suggest that any sign that China is dealing with bad debts in a commercial way is reassuring for future growth and the investment climate generally. "
" China’s big banks are under pressure to sell their non-performing loans because they face tougher reporting requirements after listing in Hong Kong. Moreover, Chinese banking regulators believe the banks are underreporting their problem loans and have urged lenders to double their capital cushions. "
" While nobody can calculate the potential supply, the way China revved up its credit machine in 2009 suggests the figure could be substantial. Morgan Stanley reckons Chinese banks lent more than $4.1 trillion in the two years from the end of 2008. Total credit estimates rise to $5.7 trillion when flows outside formal bank lending channels are included.The credit boom came to an end earlier this year as Beijing started raising interest rates to rein in inflation and an overheated property market. However, last month it eased monetary policy slightly amid fears that economic growth was slowing and that the Chinese manufacturing sector was taking an unexpectedly big hit from a decline in foreign orders, while inflation has been on a downward trend. "
" Estimates vary widely on the amount of bad loans in China. While Chinese regulators in March put the figure at less than $500 billion, Fitch, the rating agency, estimates non-performing loans exceed $2 trillion. That amount can only swell as Chinese manufacturers receive fewer overseas orders because of the euro zone crisis and a weak economic recovery in the US. "
Re: China Vulnerable to Asset Bubbles, Warns IMF
« Reply #1 on: January 04, 2012, 06:12:46 AM »
http://www.performancetradingconcepts.com/index.php?topic=104.msg398#msg398
This is indicating that China is having a debt problem that will occur,now it's obvious.
*China Uncovers Massive Irregularities in Local Government Debt-Published: Wednesday, 4 Jan 2012 | 2:17 AM ET
http://www.cnbc.com/id/45865642
" China has uncovered 530 billion yuan ($84.21 billion) worth of irregularities with local government debt, the National Audit Office said on Wednesday.An audit report, published on China's central government website, reveals some of the problems investment analysts had believed to lay beneath the 10.7 trillion mountain of debt that local governments had amassed by the end of 2010.The report, conducted for the 2010 budget year, found problems including 46.5 billion yuan worth of "irregular credit guarantees", 73.2 billion yuan worth of loans secured against irregular collateral, 35.1 billion yuan spent on stocks, houses and polluting plants and 132 billion yuan worth of expenditure not made by its approved deadline."A fifth problem is the fraudulent and underpayment of registered capital in financing vehicles, which amounted to 244.15 billion yuan," the report said. "
More post on China about China's debt issue occurring since October of 2011
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