How Big Is China’s Debt Risk?

Only by totally abandoning the current growth model, which relies on credit investment and the real estate industry, can China’s economy escape the dangers posed by the potentially risky debts on its commercial banks’ financial sheets that may exceed $1.3 trillion. The majority of bank loans have flown into the real estate market, which will become instantly volatile if and when housing prices begin to slide.

Yi Xianrong Professor, Qingdao University via CHINA US Focus http://ift.tt/25AN5FA