Blog

“‘Government and banking industry sources familiar with the situation’ who ‘declined to be named due to the highly sensitive nature of the matter,’ have been spilling the beans to the South China Morning Post. The central government, they said, is considering an ‘unofficial economic stimulus’ to prop up key economies like Shanghai. On the quiet!  For that purpose, Agricultural Bank of China, one of the state-owned megabanks, inked a deal to lend the city of Shanghai 250 billion yuan (about $41 billion) for a number of big construction projects, the sources said. The loan would amount to 12.5% of Shanghai’s 2012 GDP.”

Archived link: http://www.testosteronepit.com/home/2013/8/12/pops-in-chinas-construction-bubble-but-its-not-going-to-end.html