The bears are out in full force again, as the growing burden of governmental debts is possibly pulling the Chinese economy down. Some media even suggested China is heading for its own Lehman debacle. Is that true, of just part of the spinning inevitable before the Third Plenum is gathering in November for its key meeting on China’s reform. Can and will the government bail out the banks and local governments?Read More →

The party is over for Chinese banks, shadow banking expert +Sara Hsu concluded (together with co-author Andrew Collier) at the EastAsiaForum.com. Regulator can no longer turn a blind eye, as loans put local governments and private lenders into trouble.Read More →

Shadow banking covers about 25% of China’s financial industry, and poses a threat to the country’s future. Shadow banking expert Sara Hsu fears that these riskier ways of getting finance, shadow banking might collapse and wipe away the savings of many Chinese, if the government does not step in, she tells at the China Weekly Hangout.Read More →

The central government is actively going after its major state-owned banks for ‘violations’ in its lending policies, indicating concern about the direction of China’s financial system. China is not yet facing a Lehman moment, tells business analyst Shaun Rein the BBC, but action is needed.Read More →

In a surprise move China’s financial authorities decided last week to abandon their tight money lending policy and losend the reigns for its banks again. Wrong policy, says business analyst Shaun Rein in CNBC, who has been praising the government handling of inflation and overspending in the past.Read More →

Political and finance analyst professor Victor Shih discusses the changes of massive capital flight from China. The amount of 3 trillion US dollar could leave the country, he argues in this video.How much value has its officially formidable foreign exchange reserve?Read More →

Social instability and a touchy change of power in 2012 are just two of a set of stinging problems China’s sky-high debts is causing the country, political analyst Victor Shih tells the Global Post in an extensive interview on the country’s shortfall. Read More →