CLSA Head: ‘There Are Bad Debts that Aren’t Even Transparent to the PBOC or the Government’

Francis Cheung, CLSA, Head of China and HK Strategy, declares the PBOC or government has no fucking idea how deep the rabbit hole goes, saying ‘there are bad debts that aren’t even transparent to the PBOC or the government,’ referring to China’s troublesome shadow banking problem.

‘Looking inside China, you have big bubbles. You went from a stock market bubble inside China, now a property bubble. There’s just too much liquidity inside China.’

When discussing China’s property market, Cheung declares ‘things are just heating up. Every month 2% month to month. Things are getting so expensive.’

I found this interview to be incredible, in regards to its transparency. Instead of hiding behind a shroud of smoke and mirrors, Angie Lau from CNBC Asia extracted some refreshing candidness from Mr. Cheung in a must see interview for anyone interested in the ongoings in China.