Chinese's economy had a great impact on businesses around the world. The worst hit is the Chinese mining companies. The boom encouraged mining houses to invest further into new mines.
The world wide mining network could just about satisfy the huge demand and was rewarded by sky-high prices. As the slowdown kept creeping in there was no further market to expand to.
The overcapacity and rapidly fallen prices had a devastating impact on the mining industry. The sudden huge losses and diminishing capital created a massive debts and had a great backlash on banks which were beginning to be at a loss how to recuperate only some of the money.
Only recently there has been a light at the end of the dark tunnel only because of a reorganisation across the industry to level out the supply to the demand.
If Independent analysts reading the situation right it could create an upward trend in share prises. This will encourage companies to launch equity fund-raising. The temptation to reduce their debts will impose a dilemma to long-fund managers. They will have to make a very difficult decision.
In cases like that it is much easier for Hedge Fund where you can short the stock, close down and start again later when the situation is profitable without too much risk.
Well, as the saying goes "Time will tell".
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