05-09-2017, 01:52 PM
Keep an eye on this:
What may be shaping up as China’s most concerted effort yet to bring its credit boom under control is spurring investors to gauge any contagion to broader financial markets, a-la 2015, when Chinese turmoil caused global ructions. Policy makers’ moves to crack down on leverage have already wreaked about $500 billion of financial damage domestically, and -- along with evidence economic growth may be peaking -- are dragging on industrial metals and iron-ore prices globally. The key metrics to watch now: the yuan’s exchange rate and cross-border capital flows.
China's Deleveraging Pain Puts Investors on Alert for Contagion - Bloomberg