Chinese Investment is on fault line as over-investment is not paying off the expected return and overall growth of the world's manufacturing powerhouse is bleak. The banks which heavily relied on Sino growth story is decamping and threatened by the potentials loan losses. Both HSBC and Standard Chartered are in trouble, for the first time after 2008 as the emerging market bet is no longer proved to be a wise bet. Both the banks are trading way below their tangible net assets. Both the banks are having huge profit locked in Asian currencies as the 75% of their loan repayments are expected from Asian markets. Deutche banks is already experiencing difficulty if maintaining the level of business in terms of client profitabiltiy, & AUM and planning to cut the headcount like HSBC. Citibank has already downsized its business with its recent sell of Hedge Fund business.

Moreover, look into the bond market where the high yield bonds spreads are widening indicating the lack of liquidity and market confidence both. This was not the case ever since 2007-08. As if this was not enough, the technology sector has always been one of the red flag for the global economic stability. Be it Facebook or Apple, they are beyond their roof of the sensible price and this is just waiting to be corrected. Oil market is already lacking the energy to recover and giving the dizziness to already bleeding bond market. In total, the major indicators of market has started to show the signs of the next troughs of the economic cycle and downturn.