China’s Big 4 Banks a Huge Buying Opportunity: Goldman

By EconMatters: Goldman Sachs has historically been one of the more bullish investment houses on Wall Street, but the firm has recently taken a dark macro view. The Wall Street Journal reported on Sept.

Share prices of China’s major banks are a sure evidence for the decline in investors’ expectations for country’s corporations.   

The huge 8.8 magnitude earthquake that hit Chile this weekend could have short-term affects on stocks' potential winners and losers.CopperWith Chile being the world’s number one producer of copper, the industrial metal surged over 5% on Monday, as supply disruptions sent the price higher. The iPath Dow Jones Copper ETN (JJC) tracks the price of copper and the PowerShares Base Metals ETF (DBB) is composed of one-third copper along with aluminum and zinc.

Shi Zhengrong, once China’s richest man, saw his fortune further unravel Wednesday as the solar company he founded allowed its main unit to tip into insolvency. Shi’s stake in Suntech Power Holdings Co. was valued at $1.7 billion when he emerged at the top of the Wall Street Journal’s rich list for China in 2006. His roughly 30 percent stake today is down to about $32 million, if shareholders get anything out of the Chinese bankruptcy process.

A Chinese project to make a copy of Manhattan, complete with Rockefeller and Lincoln centers is not going well. The replica city is about an hour from Beijing and may need a bailout. Elsewhere, real estate prices have fallen like a rock in Shanghai, and China's banks may be understating their exposure to local borrowing gone haywire. Local Debts Dwarf Official Data

Chanda Kochhar, CEO of ICICI, commented that the India needs to take example from China’s banking sector if it wants to be able to cope with its needs for economic and infrastructure development, reported Financial Times.  

A few years ago local Chinese municipalities had little debt. Today they have a $1.7 trillion mountain of it, nearly all of it financing economically non-viable projects in the name of "stimulus". The proposed "solution" of course is to roll the debt over, while adding still more to the debt mountain, hoping things will get better. Please consider China tells banks to roll over loans