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IMF: Impact of shocks to China's fundamentals on global financial markets is expected to grow stronger and wider over time - April 4, 2016

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  • IMF: Impact of shocks to China's fundamentals on global financial markets is expected to grow stronger and wider over time - April 4, 2016

    China jitters could trigger global market bloodbath, IMF warns

    4 APRIL 2016 ? 2:55PM

    snip


    "The impact of shocks to China's fundamentals on global financial markets is expected to grow stronger and wider over time," the Fund said in a pre-released chapter of its Financial Stability report.

    Jitters over the health of the Chinese economy could trigger a bloodbath on financial markets if a hard landing materialises, the International Monetary Fund has warned.



    hat tip Michael Coston



  • #2
    http://www.straitstimes.com/business/banking/china-needs-massive-bailout-in-the-trillions-of-dollars-says-top-banking-analyst
    China needs massive bailout 'in the trillions of dollars', says top banking analyst


    Published 5 hours ago HONG KONG (BLOOMBERG) - Charlene Chu, a banking analyst who made her name warning of the risks from China's credit binge, said a bailout in the trillions of dollars is needed to tackle the bad-debt burden dragging down the nation's economy.
    Speaking eight days after a Communist Party newspaper highlighted dangers from the build-up of debt, Ms Chu, a partner at Autonomous Research, said she was yet to be convinced the government is serious about deleveraging and eliminating industry overcapacity.
    She also argued that lenders' off-balance-sheet portfolios of wealth-management products (WMPs) are the biggest immediate threat to the nation's financial system, with similarities to Western bank exposures in 2008 that helped to trigger a global meltdown...
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