- Nomura says China will probably tighten policies this year to reduce the risks of a “systemic” financial crisis
China is displaying the same three symptoms that Japan, the U.S. and parts of Europe showed before their respective financial crises, economists Zhang Zhiwei and Wendy Chen wrote in note dated yesterday. These signs are:
- a rapid build-up of leverage,
- elevated property prices
- and a decline in potential economic growth, they said.
- Nomura’s ‘base case’ is a government tightening of policies
China May Tighten Policies to Contain Growing Risks, Nomura Says
