China's growing problems in the Chinese banking system could reportedly trigger a global meltdown, according to one of the most reckoned Chinese analysts.
Charlene Chu, a former senior analyst at Fitch in Beijing and the current head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China's financial system was posing a greater risk for international banks, Smh.com.au reported.
Citing one of the major reasons for China's stability, Chu said that unlike many emerging markets, there is very little reliance on foreign funding.
However, Chu warned that if China were to rely on foreign funding, it would then be vulnerable to swings in foreign investor appetite.
