I was just speaking with an expert on the Chinese banking and finance system and I asked him what were the major problems with the Chinese banking system. He replied, "Well, housing prices are falling and many banks have bad loans and if prices fall much further the borrowers won’t have the money to pay the loans back." I kid you not.
Also, contra the U.S. the Chinese Central Bank is reducing the growth in the money supply to combat inflation. Interesting times.