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...officials remain cautious about letting consumer debt grow too fast, and have maintained safeguards such as low credit limits. Wang Huaqing, assistant chairman of the China Banking Regulatory Commission, recently told the Washington Post that such decisions come from reports of people taking out loans to speculate in the stock market or on real estate, adding the indebtedness of young Americans was also a cautionary tale. "We have been paying great attention to credit card risk and loan risk," Wang said...

Author: /time Magazine | Title: In China, There's Priceless, and for Everything Else, There's Cash | 7/13/2007 | See Source »

Amid the relentless mania for making money that defines 21st century China, it's easy to forget that the country's stock markets in Shanghai and Shenzhen are less than two decades old. They may be barely out of adolescence, but they are already among the largest in the world. According to a forecast this month from PricewaterhouseCoopers (PWC), a global consulting firm, Chinese companies will raise $52 billion this year through initial public stock offerings in Shanghai and Shenzhen, more than double the amount forecast at the start of the year. Remarkably, this makes it likely China will generate...

Author: /time Magazine | Title: Echo Boom | 7/12/2007 | See Source »

...This rapid rise testifies to the buoyancy of China's equity markets. The relentless increase in stock prices in both Shanghai and Shenzhen-the former market has trebled in value in just the past 18 months-has triggered a stampede of Chinese companies eager to offer shares to a ravenous public. But is the IPO boom a historic milestone marking the permanent shift of China's financial center of gravity from Hong Kong to the mainland? Or is it a temporary aberration that, for investors, will come to a tragic and costly...

Author: /time Magazine | Title: Echo Boom | 7/12/2007 | See Source »

...savings deposits don't even keep pace with inflation. So many have dumped their growing savings into real estate, resulting in speculative property bubbles in major cities that have driven house prices beyond the reach of average people. The fact that property prices in places have declined while stock prices have soared is not an outcome that displeases the government. "If the new listings diverted some savings that were otherwise driving up the price of apartments in Shanghai-and they definitely did-that was fine [by Beijing]," Sun says...

Author: /time Magazine | Title: Echo Boom | 7/12/2007 | See Source »

...economy. Its 'dirty-peg' currencies, which ostensibly float but in fact are controlled by central banks, have kept exports higher and imports lower than they would be otherwise. In the case of China, with its $1.2 trillion of foreign-exchange reserves, the cash is inflating an asset bubble in stock and property markets...

Author: /time Magazine | Title: Accident Insurance | 7/12/2007 | See Source »

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