Late in June, the stockmarket listing of Macau Legend in Hong Kong was suspended. This share floatation was worth approx £500million.

The reason for the abortion of this floatation was due to the market turmoil in China and the potential pending credit crisis in China. According to financial markets inter-banking lending in China is ceasing up. Last week the Shanghai index fell and has been very volatile and overnight borrowing costs jumped to 13.9% on Fri 21st June. (This is more than double the normal rate).

In 2012 the People’s Bank of China (PBoC), the central bank forced commercial banks to hold more cash in an attempt to create a buffer for banks to weather bad loans and also was an attempt to cool the inflated real estate market.

The result of all this, had rattled global markets, with the UK and US addicted to QE and when the US Federal Reserve hinted at winding down the bond buying programme (QE), the global markets too fright.

This is an age of unprecidented risk, Stagflation in Europe, High Youth Unemployment, Emerging Markets with structual issues, such as Chinese domestic real estate inflation and a potential banking problem, India with poor infrastructure, and the US gripped by an economy that is stuck in 2nd gear, and a huge budget deficit.