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China's Bear Stearns Moment Is More Likely a Slow Burn

Listening to the short sellers, one could be forgiven for expecting the imminent toppling of China’s once-envied economy.

Stock traders have doubled bearish bets against some of China’s biggest property developers, while a smaller one, Zhejiang Xingrun Real Estate, was unable to pay creditors that included more than 15 banks and collapsed just days ago. That came less than two weeks after Shanghai Chaori Solar became the country’s first company ever to default on an onshore bond—an episode dubbed China’s “Bear Stearns Moment.”