China credit risks grow as debt produces less GDP, loans rolled over

The mainland is requiring more and more debt to produce less and less growth. This raises the issue not just of where exactly all the money is going, but what happens once we all find out.

It is also causing concern that China might suffer a "Minsky moment", a classic debt bust when investors liquidate positions to satisfy debts taken out for speculation.

Even if we discount the possibility of a sudden bust, the low quality of investment in China implies substantial medium-term risks for its growth and for the growth and well-being of pretty much everyone else.

via Business feed http://www.scmp.com/business/economy/article/1252796/china-credit-risks-grow-debt-produces-less-gdp-loans-rolled-over