Development with financial stability

Those trying to understand the soundness of the Chinese economy and its financial institutions can be divided into two critical interpretative "groups": the first one has been predicting an imminent economic crash (that never comes), the second one, moderate, foresees a forthcoming stagnation process.

Both have failed in their forecasts. What else do they have in common?

They blame the increases in the credit provision and its mismatch with the nominal GDP growth after the 2008 global financial crisis for the so-called ills in the Chinese economy. They are critical of the role of State-owned enterprises as strategic drivers to foster and underpin development, and say the SOEs are less productive and prone to resource misallocation.