Markets

Chinese Central Bank Warns of Market Collapse

Chinese Central Bank Warns of Market Collapse

(Beijing)

These comments were a real eye-opener for us and they should be for all investors. While the Chinese central bank, or the PBOC, is usually quite tight lipped in commentary, the bank let out some worrying statements this week. The PBOC thinks the market might be ready for a so-called "Minsky" moment, or a flash crash that comes when markets nosedive under the weight of huge buildup in debt. The bank was specifically talking about Chinese assets, and the comments, which came from the PBOC's governor, seem to indicate that the bank thinks China's economy is on an unsustainable path.

FINSUM : We have been saying for weeks that markets will need a catalyst to start a big correction or bear market, and a full-blown China meltdown would surely do it.

  • stocks
  • bonds
  • debt
  • China
  • PBOC
  • minsky moment

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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