China’s Economy on the Brink of Collapse | Epoch Times

China’s Economy on the Brink of Collapse | Epoch Times.November 8th, 2011

Cheng Xiaonong, an economist based in the U.S., told The Epoch Times that a 30 percent drop in home prices in a short period of time is a sign that a financial crisis is about to hit China.

“When the housing bubble bursts and developers go bankrupt, banks will grapple with high default rates and bad debt, resulting in a financial crisis in the banking system,” Cheng said.

Cheng said within a year China could experience a crisis worse than the European debt crisis. “Actually, a financial crisis has already erupted in China,” he said.

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