Zhongpin, Inc. (HOGS)

[fung_derf]

Chinese Asset Bubbles: The IMF warned that 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. However, the IMF said China can contain these dangers by freeing up financial markets to give investors, commercial banks and the central bank greater autonomy from government control. While not predicting an imminent disaster, the IMF made clear China needed to act quickly because it is vulnerable to destabilizing asset price booms. The fund said it ran a stress test on 17 banks that account for 83 percent of China's commercial banking system. The test showed banks' non-performing-loan ratios rose by at least one percentage point for each one-percentage-point drop in gross domestic product. Reuters.com