After a sharp recovery in the first half this year, China now faces “mounting downward pressure on growth” coupled with default risks from the property sector, said Yi Gang, governor of the People’s Bank of China.

The largest economy in Asia is bracing for weakened growth, rising leverage and “default risks for certain firms due to mismanagement and breakneck expansion”, Yi said during a panel discussion.

Although he did not name any company, it was widely understood that he was referring to