We Just Found a Major Stock Market Crash Indicator in China

Jon Banking, Market Commentary

We’ve been warning readers all year about the impact China’s ballooning debt could have on global markets.
And today we just found a major newstock market crash warning sign in China’s debt figures…
Data released today (Tuesday) by the People’s Bank of China shows ‘total social financing’ – the broadest measure of credit lending from both traditional and non-traditional sources – surged last month. The figure rose by 1.72 trillion yuan. That was well above the expected increase of 1.39 trillion yuan.
That was also well above the 1.47 trillion yuan level in August.
China’s total outstanding social financing now sits at 151.51 trillion yuan. That’s a 12.5% year-over-year (YOY) increase.
New bank lending also surpassed forecasts, coming in at 1.22 trillion yuan. That was higher than the 1 trillion yuan expected. August’s total was 948.7 billion.
Outstanding bank loans rose by 13% year over year. In the first nine months of 2016, total bank lending increased to 10.96 trillion yuan.

This post was published at Wall Street Examiner by Diane Alter ‘ October 18, 2016.