China too is hit by the famous credit crunch: the start of a volatile week for Asian stock markets can in fact be explained by the difficulties of theChinese economyhit by the sudden credit crunch. The central bank sends reassuring signals, but Goldman Sachs cuts its estimates of the second largest economy on the planet, underlining the seriousness of the banking crisis that is also affecting Beijing and its surroundings. And as the Financial Times observes, the level of credit is a long way from the boom of 2009, e a severe credit crunch could trigger a sharp drop in investment, accentuate the already noted slowdown in growth and bring about further instability in the financial and banking sector. Meanwhile, this morning in Hong Kong the Industrial & Commercial Bank, the second Chinese bank by assets, lost 2,4%; in June, the institute's shares closed in the plus sign on only one occasion. The Hong Kong Stock Exchange loses around 1,5%, Shanghai is down by 3%.
Read the analysis of Financial Times
