Apr 15, 2006
| Last Updated
China's recent investment boom looks much like the investment boom in the Asian tigers of the 1990s. Both were marked by a surge in bank credit to the private sector, a real estate boom and questions about the quality of domestic financial intermediation. Yet China has few of the external vulnerabilities that marked the Asian tigers. Its current account surplus is rising and its reserves far exceed its short-term external debt. However, China's external strength is unlikely to allow China to avoid future banking[...]
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