Total debt in China currently equals almost 260% of annual economic output, according to UBS Group. That’s up from less than 160% in 2007.
Despite the dismal numbers, China’s Shanghai Composite rose 3.22% Tuesday. But the index is down 15.96% year to date and continues to have global markets on edge.
Investors should keep a close eye on the Shanghai Composite Wednesday morning after analysts have had more time to digest the figures. Any major drop in the index could be another sign of an upcoming China stock market crash.
China’s woes have been felt stateside, as the Dow Jones has fallen nearly 8% in 2016. But even though the markets are falling, Money Morning Global Credit Strategist Michael Lewitt has created a strategy for investors to protect their money from a potential stock market crash in 2016…
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We may be skating on very thin ice here, but the weight of the evidence still supports a weak bull case for the near to intermediate term. So I’m adding buy picks on the chart pick list and adjusting trailing stops to account for the risk.
These reports are not investment advice. They are for informational purposes, for a broad audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.