The Unseen Revolution in Chinese FinancesPosted: September 24, 2016
In its report titled “The Unseen Revolution in Chinese Finances” US media Stratfor points out the silent revolutionary reform in Chinese finances. The report points out the large increase in lending but slow increase in investment, especially in the real estate sector where mortgage loans rose sharply but lending to developers for construction remains sluggish. The slowing fall of the issuance of bank acceptance that finances private manufacturers and the financing for repayment of old loans by new loans and debt-to-assets swaps all indicate coming substantial changes in China’s financial system.
That is, this blogger believe, a part of China’s reform towards a market-oriented model of economic growth. However, Stratfor says that the rising homeowner loans may give rise to dangerous risk and even a real estate bubble like those in the US in 2007 and 2008.
Source: Stratfor “The Unseen Revolution in Chinese Finances”. Only a summary is given here while the full text can be viewed at https://www.stratfor.com/analysis/unseen-revolution-chinese-finances.