With China's banks seemingly once again risking a crash by an enormous expansion of credit, it is now time for the government to give the capital markets the attention they deserve, said Fang Xinghai, deputy CEO of the Shanghai Stock Exchange at a conference on financial markets in Beijing last week.
The comments followed a speech by China banking expert Nick Lardy from the Institute of International Economics in which he warned that China's banks had recklessly been expanding credit growth since last year. That situation could lead to new non-performing loans, he warned.
The government has been deeply concerned with the banking system, but it's now time to realize that...
