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HSBC Raises China Bank Loan Stimulus Concerns

Posted by theaccountant September - 28 - 2009 - Monday

HSBCThere has apparently been some concern raised by one of HSBC‘s  economists, that China’s stimulus package may adversely overheat some sections of the Chinese economy. Many of the local governments in China have forged ahead with massive investment plans in their local Chinese communities, which have in many cases been financed by Chinese bank loans. It is feared that these bank loans may cause some sections of the Chinese economy to overheat. The massive bank loan funding is perhaps one of the reasons why HSBC is currently relocating their HSBC Chief Executive to Hong Kong from London. This move has been cited as a reflection of how important China and the East is to the HSBC bank.

HSBC have remained relatively unscathed, when compared to many of the other global banks, during the global banking storm of the last twelve months. HSBC may yet prove to feel the effects of the global recession and global banking volatility, if as the HSBC economist apparently fears, the China bank loan investment stimulus plans cause overheating and severe problems within China.

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15 Responses to “HSBC Raises China Bank Loan Stimulus Concerns”

  1. Rafael Helphinstine says:

    Thanks for reminding me I’m not the only one who has a problem with debt. I lost my job six months ago and have not yet found alternative work, full or part time. I stopped using all credit cards and now pay cash for everything. I never figured I would ever get myself into this situation.