Is China heading for a credit crunch?

Ian Brady, CIO, Oaktree Wealth Management I started selling-out of China in late January, following a visit to Hong Kong where I met several local fund managers who were worried about bubbles appearing in some Asian markets. They were especially concerned about property markets in Hong Kong and Singapore, where house prices are currently 13x the average salary. Since then, we have gone to zero exposure in China. Incremental dollar/renminbi credit in China has had a much lower impact on GDP growth. At the margin, where the majority of credit has collapsed, I think every renminbi in cred...