Soros “Very Cautious” on China’s Economy

With over 10 trillion yuan in Chinese bank loans disbursed in 2009, and more trillions on the way, George Soros, chairman of Soros Fund Management, remains concerned China’s economy is overheated. In a recent Hong Kong interview he explains how a hard landing could be in the making.

From MarketWatch:

“Caixin: What is your attitude toward China now? Positive or negative?

“Soros: I’m very cautious, until the economy cools off a little. When it does, I will be more optimistic again.

“Caixin: In 2009, Chinese banks issued 10 trillion yuan in new loans. The government has said there will be another 7.5 trillion yuan in loans this year, although banks loaned more than 1 trillion yuan in January alone. Do you think this unprecedented credit growth will eventually lead to overheating, inflation and harsher policy tightening? Do you worry about the potential risk of non-performing loans in the medium- to long-term? (more)