China Balance of Payments Deficit Risks Currency and Asset Crash

China Balance of Payments Deficit Risks Currency and Asset Crash
A worker of an Industrial and Commercial Bank of China Ltd (ICBC) branch counts money as she serves a customer in the China (Shanghai) Pilot Free Trade zone during a media trip on Sept. 24, 2014. Johannes Eisele/AFP/Getty Images
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Commentary

China’s falling savings rate coupled with increasing government directed investment rate threatens a balance of payments crisis that could crash currency and asset values.