Some Global Investors See Fresh Worries in an Old Problem: China<br />The bubble just keeps getting bigger.”<br />China’s fate has major sway over global markets, given its longtime role as a growth driver —<br />and investors may soon have a bigger stake in the ups and downs of Chinese stocks.<br />By MICHAEL SCHUMANJUNE 18, 2017<br />BEIJING — While investors have been preoccupied with President Trump<br />and chaos in Washington, nerve-rattling elections in Europe and the uncertainty created by Federal Reserve policy and Britain’s decision to leave the European Union, a once-familiar — and possibly bigger — risk to global markets has been bubbling in the background.<br />Two years after China first set off investor alarm bells worldwide with a stock market crash, a slumping currency<br />and concerns over rising debt, many investors have put those concerns out of mind.<br />The research company Capital Economics, in a June report, warned<br />that debt in China “has risen far faster than in almost any other major economy on record,” and that its continued buildup was the “biggest risk facing emerging Asia.”<br />Over the last several months, the government has tried to reverse this trend, helping slow credit growth.
