China’s tightest credit conditions since a record cash crunch in June are prompting global investors to call for greater transparency from the central bank in the world’s second-largest economy.
Incoming President Xi Jinping may find China’s investment-driven economic recovery in the Year of the Snake jeopardized by mounting risks in the finance industry.
The world’s top finance officials meeting last month were trying to commit jointly to reducing debt until Mark Sobel, a mid-level U.S. Treasury official who rarely speaks in public, led the charge to kill the effort.
"The most exposed are small developers, particularly in small cities with weaker balance sheets and less access to the banking system."
- David Loevinger on Jan 18, 2015