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China’s Once-Mighty Credit Cycle Is a Fading Force on World Markets
China’s credit engine, which once powered industries and markets all over the world, is stuck in low gear – and set to stay there. Data for May due this week is forecast to show a resumption of loan growth after a shock contraction in April, the first for almost two decades. But nobody expects a return to the days when Beijing would engineer borrowing booms to speed up the world’s second-biggest economy. Especially since the 2008 crash, China has pumped out credit to build homes and infrastructure, which kept the economy humming. Now it’s stuck in a housing slump and already has plenty of roads and high-speed ... (full story)