chinese dont live on credit like americans, they live for saving. The financial market is slightly more regulated than the american financial market, aswell.
Exactly. Most of the money is kept in saving accounts with interest rates that are far below inflation. And what do you think the banks are doing with that money?
China is in fact buried in a massive pile of debt, from corporate to muni to personal, that they will never be able to climb out from under. And they've had to pile on ever larger amounts of debt just to keep faking the 'growth.' The notion of China being the land of savings and low debt is completely a myth.
"In the meantime, some investors are increasingly alarmed by the speed at which local governments are piling on debt to pay for public works. China's state auditor said in its report on Monday that local governments had total outstanding debt of 17.9 trillion yuan ($2.96 trillion), including contingent liabilities and debt guarantees, at the end of June."
"A report by Nomura said Thursday that Chinese municipal debt, a focal point of major concern about the country’s economy, had grown at an alarming 39 percent clip in recent years."
"China's overall debt-to-GDP ratio has sprung to over 200% from about 120% in five years. Most of this is from local governments and state-supported companies."
China's corporations are drowning in debt, at 151% debt to GDP ratio, the highest basically in the major industrial world. Twice as high as America's ratio.
