The problem is true. I think the financing of the country is running major
issues. Housing and Central government owned company have took away the
cheap credits and force all other company go extreme.
Housing is also dangling sword, the central area of the cities have very
high rent need to pay and business are struggling to keep up.
Beijing YOY rent was up ~9-10%. This kind of inflation is cuting throat of
the businesses. Housing bubble has to be tamed. Although I own China stocks,
but I have cut exposures after my recent visit. Things are still bleak in
the coming year and think China will underperform U.S. market.