. >> steve engle said china is building the hardware.he tougher job is building the software that goes with it. >> you have a developed economy now. it is still a developing market. the real story in china is going to be how you actually fit a 21st century financial market on top of that economy. >> and what type of monetary policy is put in place to assist that growth. >> what about making sure that the liquidity goes to the right place. there is a 70 billion trillion tracked behind the currency dam. dig some irrigation to let it flow through the economy. >> it is a great analogy, but it is very much harder to do it. >> allow the shadow banking system to emerge absorb it into the banking system. allow some of that pressure out. you built the infrastructure. this is part of the hardware. you are building the hardware so that when you are ready, you can interact with the rest of the world. your portfolio is going to have things that do not even exist right now. that will be infrastructure bonds, the restructured s.o.e. convertible debt. y

let's bring in steve engle under, global head of g 10 strategy at citigroup. and joe from bloomberg markets. they say it is darkest before the dawn. is there a dawn or is this -- >> there could be. last night it seemed like the talks broke off in acrimony. no one seemed to be moving. as the night progressed, there were two draft statements, one that greece was willing to accept. they were not that far apart between the statement that the eurogroup wants to make any statement the greeks want to make. it is a lot of semantics. there are some issues. it is very close. it seems plausible. erik: do you agree? >> largely. it is pretty clear the outcome is going to be a six-month period of discussing whatever program greece has in the future. whether that is called an extension or a new framework discussion is irrelevant. it's clear that in terms of the substance what greek debt servicing are going to be, but the fiscal issues are going to be. the eurogroup is going to be flexible. they will find language that allows the eurogroup tuesday the agreement is being exten

steve engle there. it's all coming against the background of china's official crackdown on is corruption. could have ever wider ramifications. and now the fallout could ensnare some of the mather corporations as well. we are mentioning the fallout from the coldings affair here as well. are we is not >> it carries on. the casa debt situation, basically it missed the bond payment, coupon payment, came as it was under investigation for alleged graft. we were seeing that at many chinese companies as the anti-corruption company continues, what many are saying biggest anti-corruption campaign. >> or anti-opulent campaign here. >> that's right. sales down at casinos, luxury handbags not doing as well. bigger warning from the ratings agencies is property firms and banks may be nofmente have trouble with debt. specifically let's look at moody's, nonperforming loans, expect those to grow significantly for property sectors. s&p said in the coming months debts will be mature as developers. we reported on the depart