Bo Zhuang, a China economist at the London research firm Trusted Sources, says the rise in private-sector indebtedness is "quite an alarming issue."
It's quite an alarming issue. The government is trying very hard to slow down the pace of the leveraging up, but they are not deleveraging. The debt-to-GDP ratio will continue to go up.
Last month the fund manager BlackRock noted there were only four other credit booms of similar magnitude to that seen in China over the past 50 years, and all of them resulted in a banking crisis occurring within three years.
