Just as concerns over a hard landing in the world's second largest
economy look to have faded, economists at Nomura sounded a warning that
the Chinese economy is exhibiting the same worrying symptoms that
triggered the 2008 financial crisis.
The country's rapid buildup
of leverage, decline in potential growth and elevated property prices,
are three red flags that should not be downplayed, according to
economists at the bank, Zhiwei Zhang and Wendy Chen.
"China
faces rising risks of a systemic financial crisis and the government
needs to take action quickly to contain such risks. We believe the true
extent of financial risks in China is not fully appreciated by
investors," Zhang and Chen wrote in a report released over the weekend.
READ MORE: http://www.cnbc.com/id/100562024
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