China Think Tank Warns of Potential ‘Financial Panic’ in Leaked Note
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Authorities urged to take steps to avert another stock rout
- Leveraged share purchases reach levels last seen in 2015
A leaked report from a Chinese government-backed think tank has warned of a potential “financial panic” in the world’s second-largest economy, a sign that some members of the nation’s policy elite are growing concerned as market turbulence and trade tensions increase.
Bond defaults, liquidity shortages and the recent plunge in financial markets pose particular dangers at a time of rising U.S. interest rates and a trade spat with Washington, according to a study by the National Institution for Finance & Development that was seen by Bloomberg News and confirmed by a NIFD official. The think tank warned that leveraged purchases of shares have reached levels last seen in 2015 — when a market crash erased $5 trillion of value…
China Think Tank Warns of Potential ‘Financial Panic’ in Leaked Note
