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China credit crunch is red light to global economy

Jan 01, 2019 - The Daily Telegraph (London)

CHINA is sliding into a manufacturing recession as a wave of bond defaults sweep through the corporate sector, signalling yet further trouble for the battered global economy.

The official PMI survey for December slumped below the boom-bust line to 49.4. New export orders slid to crisis levels of 46.6 last seen in the depths of the Chinese currency scare of 2015.

"The worst is yet to come," said the Japanese bank Nomura. The autumn boost by Chinese exporters is fading: they have alrea...