China faces far worse financial risk than US before global crisis: former FM

The "likelihood of China generating systematic financial risks is pretty big", the Hong Kong-based South China Morning Post today quoted the 68-year-old leader as saying. The distortion was exemplified by the high cost of financing in China despite the loose monetary environment, Lou said.

By: PTI | Beijing | Published: January 30, 2018 10:41 pm

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Lou, who helped shape China’s economic reforms, has been an outspoken figure since leaving the main policymaking arena and is generally regarded as a reformist. (Source-AP)

China’s financial system was facing higher risk than that of the US before the global economic turmoil a decade ago, former finance minister Lou Jiwei has said. China’s financial system had become “severely distorted”, Lou said while speaking at Forum in Beijing recently.

The “likelihood of China generating systematic financial risks is pretty big”, the Hong Kong-based South China Morning Post today quoted the 68-year-old leader as saying. The distortion was exemplified by the high cost of financing in China despite the loose monetary environment, Lou was quoted as saying by PTI.