China’s Real Estate Collapse Threatens Regime’s Financial Stability: Expert Warns

‘The collapse of the financial system closely linked to the bursting of the real estate bubble is imminent,’ economist Li Hengqing said.

A worker installs sign outside a branch of the Industrial and Commercial Bank of China (ICBC) in Beijing, China, on May 5, 2015. Greg Baker/AFP/Getty Images

Two years into China’s real estate crisis, a larger-scale financial crisis is looming in the communist state. China’s vice premier, He Lifeng, recently warned that the country must prevent systemic financial sector risks.

U.S.-based Chinese economist Li Hengqing told The Epoch Times that the Chinese Communist Party’s (CCP) leadership is anxious since the severity of the economic situation has far surpassed the so-called systemic financial risks.