Financial Instability in China

China avoided the 2008 global financial crisis thanks to a massive debt-financed investment plan. It has since suffered from periods of financial instability requiring State intervention. None of these translated into major crises, but their recurrence is of concern not only for the Chinese authorities, but also for the world given China’s economic weight. It is key to understand the causes at the heart of China's financial stresses, as well the probability that authorities find themselves unable to manage a financial blowout.