04-16-2015, 12:53 PM
Paulson, in an interview in USA Today tied to a new book he’s written, is concerned about so-called trust companies, which are non-banks with over $2 trillion in assets there. He says they will have to contend with a wave of credit losses and debt restructuring. “It is important that China stop its over-reliance on municipal debt to finance infrastructure,” he said in an interview with the newspaper. “I take comfort in the fact that China’s leaders understand this.”
Hank Paulson says China financial system to face reckoning - MarketWatch
"The fundamentals are simply not there to back it up at the moment," Male said. "The Chinese will continue to stimulate an economy that is simply not growing the way the market believes." Brian Jacobsen, Wells Fargo Advantage Funds chief portfolio strategist, doesn't agree. He sees the Chinese economy as having strong fundamentals.
China market bubble? Bull vs. bear
All of this raises the question: Is China in the midst of a bubble? And if it is, what should American investors do? "Certainly a bubble exists," said Ankur Patel, chief investment officer at R-Squared Macro Management. Rather than enjoy the ride up or try to profit from its eventual popping, Patel said the prudent move for U.S. retail investors is to stay away from the Chinese market altogether.
Bubble trouble: China's stock market looks too hot - Apr. 15, 2015