China is at the end of the financial crisis?

MAKE MONEY BLOG$~BEIJING. The global economy has not shown a positive signal. In addition to Europe, one of the indications of slowing global economic growth in China is dropping.
At present, China's economy is showing signs of decline ranging from the manufacturing sector to the banking sector. No doubt, the negative speculation began to appear. One of them, Chinese Prime Minister Wen Jiabao will not be able to achieve the growth target for the first time ruled since 2003.
The results of a government survey released 1 September shows, the level of China's manufacturing unexpectedly contracted for the first time in nine months in August, which caused a decrease of booking. These data reinforce the evidence of economic weakness Panda country after the accumulation of rubber stocks near record highs in China main port. In addition, the financial sector, an increase in non-performing loans amounted to 27% of the overdue loans of the five major banks in the first half of 2012.
For your information, China has never failed to exceed the annual growth target of the Communist Party since the upheaval of the Asian financial crisis in 1998. Failure to achieve this year's target will be difficult to handover the reins of leadership. Policy makers this year hold for poured stimulus in order to avoid the explosion of the property market and to avoid an increase in bad loans.
China Chief Economist Australia & New Zealand Banking Group Ltd. in Hong Kong judge, if the government did not immediately respond to current conditions through the new policy, the rate of China's gross domestic product will sag below the target. "And it is not likely the government will now hand over the deteriorating economy in the next administration," he explained.
He added that one of the policies that government can do is cut the statutory rate (GWM) banks more aggressively to revitalize the economy. "If we cut the reserve requirement as soon as possible, mala growth in the fourth quarter to improve," analysis.
Could trigger a financial crisis
Liu also said, if China's economic growth fell below 7%, it could potentially cause great pressure on the financial system. Do not even rule out the financial crisis when local governments run out of cash. "Infrastructure development is interrupted, which will also drag the heavy equipment industry and the banking system in the end," he said.
Liu cut its estimate for growth this year from 8.2% to 7.8% after the release of the data manufacturing purchasing managers index. In August, the index fell to 49.2 from 50.1 in July position.
ANZ is not the only bank slashed its estimate for China's growth. Previously, Mizuho Securities Asia Ltd. was first slashed its forecast from 8.1% to 7.6% on August 31. Meanwhile, Bank of America Corp. has cut its estimate last month to 7.7% from 8%.

source: kontan.co.id 

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