STOCK markets across the world plunged today amid growing fears China’s monstrous debt bubble is about to burst and trigger a devastating financial crisis.
Investors are becoming increasingly nervous the world’s second-largest economy is about to trigger a crash, which could be worse than the stock mayhem witnessed at the start of this year and last August.
China has been taking on yet more debt in what is thought to be a bid to combat its economic slowdown.
The Asian country’s deficits reached 237 per cent of GDP in the first quarter of this year, from 148 per cent at the end of 2007, according to the Financial Times.
One of the world’s top investment firms has also warned that it has been “too quiet on markets” in recent weeks.
Blackrock said the current calm is “unusual” and looks “unsustainable”.
The firm has warned clients to prepare for higher volatility, fuelling fears that stocks are about to crash.
Richard Turnill, BlackRock’s global chief investment strategist, said: “It’s been too quiet out there.”
Full article: Fears grow China’s HUGE debt bubble will spark a devastating global CRASH (Express)