From the available signs and indicators, it seems China is the front running candidate for a potential major crash. And given its sheer size and impact on the global markets, no investor can afford to ignore this elephant in the room.

Here are some facts that hint that China could be heading for some major trouble:
1.Commodity prices are crashing!

Iron ore prices have already crashed over 40% this year. They are now at a five-year low.

Brent crude oil prices are down nearly 30%

2.China's wasteful investments

China has been an investment-driven export-oriented economy. It has achieved high growth through continuous and heavy investments in infrastructure and new capacity creation. With the slowing global economy impacting exports, China's economic model is no more sustainable.

A huge portion of these investments is simply wasteful expenditure that is not going to generate revenues.

3. Huge pile of debt

China's banks have lent about US$ 5 trillion over the last 6 years.

*The People's Bank of China announced a 40-basis point cut in one-year lending rates as well as 25 basis-point cut in deposit rates.

Whenever the China crash happens, the consequences are going to be enormous for the entire global economy.