Is China's Financial House Of Cards About To Collapse?

Photo: China accounts for half of all the $30 trillion increase in world debt over the past five years Photo: AFP

Markets Hold Breath As China's Shadow Banking Grinds To A Halt -- The Telegraph

Fresh loans in China’s shadow banking system evaporated to almost nothing from $160bn in January

A slew of shockingly weak data from China and Japan has led to a sharp sell-off in Asian stock markets and the biggest one-day crash in iron ore prices since the Lehman crisis, calling into question the strength of the global recovery.

The Shanghai Composite index of stocks fell below the key level of 2,000 after investors reacted with shock to an 18pc slump in Chinese exports in February and to signs that credit is wilting again. Iron ore fell 8.3pc.

Fresh loans in China’s shadow banking system evaporated to almost nothing from $160bn in January, suggesting the clampdown on the $8 trillion sector is biting hard.

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My Comment: Get ready for a flood of cheap Chinese imports.