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Just as the global economy has all but recovered from debt-fueled crises in the United States and Europe, economists have a new worry: China. They see a lending bubble there that threatens global growth unless Beijing defuses it. That’s the view that emerges from an Associated Press survey this month of 30 economists. Still, the economists remain optimistic that Beijing’s high-stakes drive to reform its economy—the world’s second-largest—will bolster Chinese banks, ease the lending bubble and benefit U.S. exporters in the long run. […] The source of concern is a surge in lending by Chinese banks. The lending was initially...

Spot The Real Liquidity Bubble Submitted by Tyler Durden on 02/15/2014 16:01 -0500 China Japan Liquidity Bubble Monetary Policy Shadow Banking Overnight the PBOC released the latest Chinese bank loan and liquidity data for the month of January. Those who have been following our recent series on Chinese liquidity measures will know that when it comes to the real marginal source of global liquidity, it is China that is the true unprecedented juggernaut, putting both the Fed and the BOJ's "puny" QE programs to shame (see "Chart Of The Day: How China's Stunning $15 Trillion In New Liquidity Blew Bernanke's...

Did you know that financial institutions all over the world are warning that we could see a “mega default” on a very prominent high-yield investment product in China on January 31st? We are being told that this could lead to a cascading collapse of the shadow banking system in China which could potentially result in “sky-high interest rates” and “a precipitous plunge in credit“. In other words, it could be a “Lehman Brothers moment” for Asia. And since the global financial system is more interconnected today than ever before, that would be very bad news for the United States as...

Morgan analyst Adrian Mowat says Chinese Economy Already in 'Hard Landing' “If you look at the Chinese data, you should stop debating about a hard landing,” Mowat, who is based in Hong Kong, said at a conference in Singapore yesterday. “China is in a hard landing. Car sales are down, cement production is down, steel production is down, construction stocks are down. It’s not a debate anymore, it’s a fact.” His team was a runner-up for best Asian equity strategists in a 2011 Institutional Investor magazine poll. Mowat said in May the risk of a hard landing was building in...

What Happens When China’s Bubble Bursts Anyone who has watched China for the past few years could see a bubble in the making. But how messy and damaging will the bursting bubble be—inside China and out?Probably not as disastrous domestically as might be expected because China’s leaders have been reading the tea leaves properly and taking anticipatory action to avert the kind of sudden, deep recession that would immediately cause widespread social and political unrest. What would a China slowdown mean for the rest of us? In the main, three things will become evident. First, China will remain committed...

China to create largest mega city in the world with 42 million people ... China is planning to create the world's biggest mega city by merging nine cities to create a metropolis twice the size of Wales with a population of 42 million. City planners in south China have laid out an ambitious plan to merge together the nine cities that lie around the Pearl River Delta. The "Turn The Pearl River Delta Into One" scheme will create a 16,000 sq mile urban area that is 26 times larger geographically than Greater London, or twice the size of Wales. –...