China’s biggest blue-chip stock index – the CSI-300 – dropped over 3% overnight and fell to its lowest level since Feb 2009. Corporate bond and trust defaults (crushing confidence in credit markets), shadow-banking collateral unwinds (crushing commodity prices), and exports collapsing (crushing dreams of a global economic recovery) are all weighing on Chinese stocks. This comes, ironically as the US equity “market” celebrates the 5 year anniversary of the Mar 2009 lows and soars to new highs in the face of turmoil. There is, of course, another outlet for China’s massive money-printing – that dwarfs the Fed’s – its real estate market.. and that is the bubble that the PBOC is trying to tamp down.
Charts: Bloomberg
via Zero Hedge http://ift.tt/1oG4NjN Tyler Durden