The Slog’s two recent posts about Chinese banks flooding Asian markets with share and rights issues led us to speculate about parallels with the UK in 2008.

This view gained support this morning as former IMF Chief Economist and Harvard professor Kenneth Rogoff said China’s property market “is beginning a collapse that will hit the nation’s banking system”.

Three weeks back, China’s financial regulator said it foresaw growing credit risks in the real-estate and property sectors, and warned of ‘increasing pressure from non-performing loans’. (NPL is this week’s new euphemism for subprime loans).

The regulator added that risks associated with personal domestic mortgages are rising and a “chain effect” may happen. (See Slog piece of yesterday). This may now be taking place. Or – associated with this – the market offerings may be a direct result of Chinese Premier Wen Jiabao’s order to lenders to set aside more money as reserves. The Beijing Government wants a 22% cut in credit growth at banks this year, to 7.5 trillion yuan ($1.1 trillion)….an obvious sign that they too can see problems down the road. But can they see a parallel with Goodwinism?

We shall see.

Related: Shock as Bank of China turns to markets.