{"id":35555,"date":"2018-06-27T09:44:36","date_gmt":"2018-06-27T14:44:36","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35555"},"modified":"2018-06-27T09:44:42","modified_gmt":"2018-06-27T14:44:42","slug":"leaked-note-by-chinese-think-tank-warns-of-potential-financial-panic","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35555","title":{"rendered":"Leaked Note By Chinese Think Tank Warns Of Potential “Financial Panic”"},"content":{"rendered":"
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Leaked Note By Chinese Think Tank Warns Of Potential “Financial Panic”<\/span><\/a><\/h3>\n<\/div>\n
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It’s not just Trump who is concerned about the level of the S&P as a result of escalating trade war with China: it appears that China is growing worried as well, and for good reason – as we noted earlier, the Shanghai Composite already tumbled to a bear market from its highs 6 months ago, a drop which comes at a very precarious time for China whose economy is slowing amid an aggressive deleveraging campaign, corporate defaults are rising, and the all important credit impulse is waning.<\/p>\n

Confirming as much, this morning Bloomberg reported of a leaked report from a Chinese government-backed think tank which warned of a potential \u201cfinancial panic\u201d in the world\u2019s second-largest economy, “a sign that some members of the nation\u2019s policy elite are growing concerned as market turbulence and trade tensions increase.”<\/p>\n

According to a study by the National Institution for Finance & Development that was seen by Bloomberg News, bond defaults, liquidity shortages and the recent plunge in financial markets pose particular dangers at a time of rising U.S. interest rates and a trade spat with Washington<\/strong>. The think tank also warned that leveraged purchases of shares – i.e. stocks bought with margin loans – have reached levels last seen in 2015, when a market crash erased $5 trillion of value.<\/p>\n

“We think China is currently very likely to see a financial panic,<\/strong>\u201d NIFD said in the study, which appeared briefly on the Internet on Monday, before being removed. \u201cPreventing its occurrence and spread should be the top priority for our financial and macroeconomic regulators over the next few years.\u201d<\/strong><\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Leaked Note By Chinese Think Tank Warns Of Potential “Financial Panic” It’s not just Trump who is concerned about the level of the S&P as a result of escalating trade war with China: it appears that China is growing worried as well, and for good reason – as we noted earlier, the Shanghai Composite already […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[130,7844,4860,506,9937,805,3222,827,4318],"class_list":["post-35555","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-china","tag-donald-trump","tag-financial-panic","tag-markets","tag-tariffs","tag-trade","tag-trade-war","tag-united-states","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35555"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35555\/revisions"}],"predecessor-version":[{"id":35556,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35555\/revisions\/35556"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}