. Decaptitated China Economic Difficulties

. Decaptitated China Economic Difficulties

Bad news piling up in the Chinese economy . Now , anxiety financial resilience Beijing starts deep . Community wondering , can the engine keep Beijing 's economy and prevent market instability ?

Signal stronger economic hardship when a number of companies reported disappointing earnings . In addition , state banks are also forced to endure large receivables . On Wednesday , the Bank of China reported the weakest earnings growth since the IPO in 2006 .

Statement agency Standard & Poor's ( S & P ) on Wednesday joined the Chinese dizzying . In Asia quarterly debt report , S & P warns China seems to be immediately handle massive lending in the shadow banking sector . This sector includes local government financing firms , property developers , as well as a trust company .

So far , China still can circumvent the case of large -scale defaults . Earlier in March, a manufacturer of solar power components became the first Chinese company which face domestic bond defaults . S & P warns China will bear more default . Its source is a wealth management products issued by non - banking sector .

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Chinese authorities , who have trillions of dollars of financial assets , it seems it 's not going to give up the entangled state debt crisis , said S & P. However , another statement S & P remains deepen anxiety among China watchers : the government may not be able to avoid some of the financial turmoil . And it will hit economic growth .

" The project is worth the investment could even shuffle obtaining financing , " said S & P. " China's growth likely to fall sharply until at least the next few quarters , which triggered an investment . "

Countries heavily dependent on exports to China began to worry , distress will follow their economic disadvantage .

" We could see a period of significant turmoil in the financial markets and its impact on the growth of China - also in commodity prices will hit Australia and New Zealand , " said Grant Spencer , deputy governor of the central bank Reserve Bank of New Zealand New Zealand on Wednesday.

The Chinese government estimates that growth could reach 7.5 % this year , the fastest pace in a group of countries with the world's largest economy . Nev Power , CEO of the Australian mining company Fortescue Metals Group , on Wednesday admitted he believes urbanization will drive China's high demand for iron ore . Demand will be higher, although growth tends to moderate .

Still, the transition from the credit -based investment - heavy industries such as steel - be focused on domestic consumption growth has made China as brake suddenly . This week , HSBC will declare early barometer of China's factory activity fell to its lowest level in eight months . Industrial production in the first two months of 2014 fell to the lowest growth in five years , according to Credit Suisse . Retail spending , investment , and the housing market shows signs of weakening .