The New CS Board

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China hard landing ?
China Economy Heading for ‘Hard Landing’ as Exports Decline, Shilling Says: http://www.bloomberg.com/news/2012-02-02/china-economy-heading-for-hard-landing-as-exports-decline-shilling-says.html

Excerpts:
About 61 percent of investors in a Bloomberg survey in December said that they anticipate a crash in the financial industry by late 2016. China’s new loans totaled $4 trillion in the past three years, twice the size of the Italian economy, raising concern that some of the lending to local governments and property developers will turn sour.

China’s government won’t allow the nation’s banks to trigger another credit crisis, said Joseph Taylor, an emerging- markets strategist at Boston-based Loomis, Sayles & Co., which oversees $163 billion in assets.

“Banks are still the instrumentality of the state,” Taylor said at the conference. “They won’t be allowed to go under. They won’t be allowed to trigger a systemic crisis.”

While the economy won’t get to crisis point, growth will probably slow because China has had “almost no success” in increasing consumption as a percentage of gross domestic product, and the nation has too much bad debt, Taylor said.

<a href="http://www.bloomberg.com/news/2012-02-02/china-economy-heading-for-hard-landing-as-exports-decline-shilling-says.html">China Economy Heading for ‘Hard Landing’ as Exports Decline, Shilling Says</a>