Tag Archives: growth

Why China’s Loan Spike Matters

China shares on loan

China has long been known for its cost-effective mass-production of goods for the rest of the world. Meanwhile, its culture, in general is one of saving. It raises eyebrows that following the fallout of the Hang Sen market crash in 2015, that now lending in China has spiked.

It has far-reaching ripples that rattle investors even more. The concern is that the country’s money, a source of stability to any nation, is teetering on collapse.

The number one rule of politics, economics, the markets, or anything in life, is not to pander to any fear mongering. Instead, it is wise and important to put the lending situation in China  into perspective.