The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Vehicle drive past a traffic policeman on the Second Ring Road in Beijing, February 10, 2014.
Vehicle drive past a traffic policeman on the Second Ring Road in Beijing, February 10, 2014.
(Jason Lee/Reuters)

Has China’s 'Bear Stearns moment' arrived?

Both the Canadian economy and the domestic equity market were pulled from the 2008 crisis fire by an unprecedented expansion of credit in China. Now, with evidence of a Chinese financial crisis piling up, Canadian investors must protect thier portfolios from the potential fallout.

Credit stress in China stems from debt-laden companies unable to repay their obligations. The trend threatens the viability of the country’s monstrous $1.7-trillion (U.S.) wealth management product (WMP) industry.