How To Play China’s ‘Triple Bubble’

A recent report by Andrew Garthwaite shed some light on the “triple bubble” that Credit Suisse sees happening in China. Garthwaite also includes a better Asian alternative for investors than Chinese equities.

Bubble 1: Credit

In the past five years, China has developed the third-largest credit bubble of any country in Credit Suisse’s database.

Historically, private sector debt reaching 10 percent higher than its long-term trend line has been predictive of a financial crisis. China’s private sector debt level is now about 40 percent above its 25-year trend line.

Bubble 2: Investment

Stunningly, the investment share of China’s GDP is…

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