China's High Debt Load & Volatility – Time To Check In On Markets

China's High Debt Load & Volatility - Time To Check In On Markets by Robert Horrocks, PhD - Matthews Asia

Oh, volatility! Having peaked in April of last year and swooned again by mid-year and at the beginning of 2016, Asia is rallying once more. What is going on?

The short and honest answer is, “I don’t know exactly.” But I am willing to hazard a guess. For sure, there are frictions within China's economy—a high debt load in parts of the corporate sector and just those parts that are markedly slowing—the commodities and industrial sectors. Elsewhere in the region, Southeast Asia is suffering from a downturn in the credit cycle and pressures on currencies. Australia suffers the impact...