![]() ![]() Yet the inner workings of China's financial system are still very much a mystery to most outsiders. Whether or not China will be responsible for the next global recession, as some experts forecast, the fate of its economy will have far-reaching consequences for the rest of the world. The country has accumulated so much debt so quickly that economists increasingly predict a financial crisis that could make 'Brexit' or Greece's economic ruin seem minor and could undermine China's ascent as a superpower.Įarlier this year, President Xi Jinping issued an urgent call for reform that gives the country until 2020 to transform its economy - a vaguely defined objective that most economists agree is unrealistic. Once dominated by four state-owned banks, the nation's financial system is a tangle of shadow banking entities, informal financial institutions and complex corporate funding arrangements that threaten growth, stability, and reform efforts. The world has long considered China a juggernaut of economic strength, but since the global financial crisis, the country's economy has ballooned in size, complexity and risk. ![]()
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