China’s Credit Bubble Is Unsustainable, Will Blow Up: Rothschild

With China’s debt swelling from $9 trillion to $23 trillion during the past five years, Rothschild Wealth Management feels the credit bubble will burst at some point. Rothschild in its recent research paper points out such an elevated level of debt is unsustainable and leaves China’s financial system vulnerable to a credit crunch. China’s galloping debt level To arrest the falling export demand in the wake of the 2007-08 financial crisis, the Chinese government came out with a $600 billion stimulus package and monetary expansion. Though these efforts revived China’s economic growth, they had the effect of its credit growing…