Let’s start with the facts: During the first quarter of 2016 and during a time when the Chinese economy stared into the abyss, the Chinese financial system created $712 billion in new loans. This is the highest amount of loans created on record, even higher than in 2009, right after the financial crisis.
Because China has one of the highest debt loads on the planet (346 percent of GDP according to Rabobank estimates—others estimate as low as 250 percent), analysts are sounding the alarm bells.
If China's new loans were a whole economy, it would be bigger than Indonesia and the Netherlands. Royal Bank of Scotland
