The problem of Underground lending in China

Marc Faber : ...the problem with China is that we do not have precise insights into the size of local lending and underground lending , because a lot of lending in China is unofficial lending that is essentially not carried on the books of Banks and that interest rates on this unofficial lending has been trending much higher recently indicating that market has tightened and that something is not well....I think some real estate markets in China will blow up and massively so we have prices could easily drop 40 , 50 percent - in Reuters...