A significant financial crisis beginning in China is almost twice as likely to happen than in any other major global economy, say analysts at Deutsche Bank. The banks chief economist Dr SpencerMichael Spencer adds that the probability is as much as 13%, due to concerns over China's huge debt levels which have surged, and coincided with the rapid expansion of the country's economy: "Since 2008, the level of debt owed by Chinese non-financial corporations, households and governments has risen by more than 100% of GDP. As the debt burden has grown, so has concern about financial stability," says Michael Spencer.
A significant financial crisis beginning in China is almost twice as likely to happen than in any other major global economy, say analysts at Deutsche Bank. The banks chief economist Dr Michael Spencer adds that the probability is as much as 13%, due to concerns over China's huge debt levels which have surged, and coincided with the rapid expansion of the country's economy: "Since 2008, the level of debt owed by Chinese non-financial corporations, households and governments has risen by more than 100% of GDP. As the debt burden has grown, so has concern about financial stability," says Spencer.