"Speaking for the first time since her departure from Fitch last year, Chu, who has taken a new job at Autonomous, the respected independent research firm, says she remains adamant that a Chinese banking collapse of some description remains not just an outside chance, but a certainty.
“The banking sector has extended $14 trillion to $15 trillion in the span of five years. There’s no way that we are not going to have massive problems in China,” she says."
The analyst in question Charlene Chu is apparently a well regarded China debt analyst, who has had even the US Fed come to her for advice:
Her warning only came to my attention this weekend when I came across an article reporting on what she saw was a doomsday scenario (driven by excess Chinese credit). It was published before the global share market falls caused by the Yuan devaluation. I decided to do more research and found the above two articles. It seems logically sound, and worrying, to me.
I wonder what Charlene Chu is saying about China now. Obviously her research is very expensive and not available publicly so one can only guess. What's the bet that the big fund managers who she has consulted for in the past have seen her latest research, and are now driving the current massive sell down of shares
