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The case against a Chinese financial crisis
A severe slowdown in China is viewed as among the greatest risks facing the world economy this year, and Thursday’s dismal news on Chinese manufacturing output exacerbated these fears. But the really important news from Beijing pointed in the opposite direction: Bank lending in China, instead of slowing dramatically as many economists had expected, accelerated in January to its fastest growth in four years. This means China is unlikely to act as a brake on the global economy in the months ahead — despite the recent weak manufacturing figures. It also suggests that predictions of a credit crunch or financial ... (full story)