Are bailout hopes fuelling a Chinese debt bubble?

Zhu Ning, oceanwide professor of finance at Tsinghua University in Beijing, believes people are prepared to take investment risks in China because they sense the Chinese government will always bail them out.

The leading academic argues such behavior is fueling a debt bubble which could put at risk the stability of the economy.

"We have had a few high-profile defaults in the bond market this year in which the government has intervened," he said.