PBoC’s Zhou warns of ‘sudden’ contagion risks
Governor continues with tough line on financial imbalances
Zhou Xiaochuan has issued a fresh warning on the state of the Chinese economy, saying financial instability could prove “sudden, contagious and harmful”.
In a fresh intervention in the aftermath of China’s latest party conference, the People’s Bank of China governor is clear that reining in risks is the priority, after several years of economic growth propelled by the rapid build-up of credit.
The macroeconomy is characterised by high leverage and liquidity risk, with overindebtedness in the
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