Goldman Sachs on China credit crunch

According to a research note from Goldman Sachs, the Chinese economy is on the verge of a credit crunch, in the wake of China’s 7-day repo rate hitting its highest level since late 2014 earlier this week.

Goldman Sachs economists believe persistently higher rates could create problems for Chinese companies and financial institutions that are heavily reliant on short-term credit to finance their operations, as MarketWatch reports.