China to face its own subprime crisis
Updated
After a week investors would rather forget, most Asian stock markets rallied today, followed by gains in Europe. The turn-around represents guarded optimism that international efforts will bring the global financial crisis under control . The Australian government guarantee of all financial deposits for three years saw the main index, the All Ordinaries rebound by five-point-six per cent. Chinese shares opened lower but rebounded to close more than three per cent higher. It might however be a shortlived reprieve. A keen China watcher believes rather than being a safety net for exporting economies like Australia, China is about to face its own sub-prime crisis.
Presenter: Karon Snowdon
Speaker: Jonathan Kaufman, Wall Street Journal's Senior Editor and Assistant Washington Bureau Chief
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