FAST FIVE: China Could Cause The Next Massive Crash In Oil Prices
This was a product largely of the 8 percent-plus annual GDP growth recorded by China over that period, with many spikes well above 10 percent and only a relatively short move down in economic growth at the onset of the Great Financial Crisis.
Aside from huge quantities of imported oil and gas, this massive economic growth was fuelled by enormous debt piled up but then hidden away in various financial mechanisms that China believed it could simply pay off eventually through its rapid economic growth.
The country's Manufacturing PMI (purchasing managers' index) for November unexpectedly surprised to the upside, coming in at 50.1 (anything above 50 indicates an expansion) for November (compared to 49.2 in October), while its Non-Manufacturing PMI for November registered 52.3 (compared to 52.4 in October) but official figures from China relating to its economy should be taken with a dose of skepticism.
More latterly they were also sold increasingly to banks and other financial institutions.
“Although concerns of contagion beyond the property sector have pulled back, risk appetite for China's offshore bond markets remains weak,” Victorino told OilPrice.com last week.