A recent report by Andrew Garthwaite shed some light on the “triple bubble” that Credit Suisse sees happening in China. Garthwaite also includes a better Asian alternative for investors than Chinese equities.
Bubble 1: Credit
In the past five years, China has developed the third-largest credit bubble of any country in Credit Suisse’s database.
Historically, private sector debt reaching 10 percent higher than its long-term trend line has been predictive of a financial crisis. China’s private sector debt level is now about 40 percent above its 25-year trend line.
Bubble 2: Investment
Stunningly, the investment share of China’s GDP is currently at levels much ...
/www.benzinga.com/analyst-ratings/analyst-color/15/08/5737683/how-to-play-chinas-triple-bubble alt=How To Play China's 'Triple Bubble'>Full story available on Benzinga.com
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