Picture courtesy: DNA India

The next market crash could be due to China. The second largest economy after America. And it will hit all of a sudden!

This is because of the country’s shadow banking system. An analyst named Charlene Chu predicted that the bad debts are $6.8tn above official figures.

The concern is that the analyst said that the bad debt will reach 7.6 trillion dollars by the end of the year. This is 5 times more than the officially declared amount of bad debt.

This is a crazy situation! The markets are at all time high and we are due for a correction. And this correction might be due to the China’s bad loans.

Yes, it might be. It is not a sustainable economic model where banks keep on issuing more loans to broken businesses. China is only concerned over the growth of the economy. In the process, it has lost its eye on the bad loans that are piling up.

This is just an anticipation. Remember me if it happens eventually!