A touch of the Enrons

Professional Adviser
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China may not be about to crash, but there's reason to be sceptical about Asia's second biggest economy's health, regardless of what Beijing says

You will not find any Enrons here in China. That recent declaration came from the very top: Premier Zhu Rongji. Yet in arguing that there are no Enron-like time bombs in Asia's second-biggest economy, Zhu may have opened a can of worms. For one cannot help but wonder if he could say the same about China's entire financial system. Even after 50 years in government, there are certain things about which the 73-year-old does not tire of speaking. One is China's debt, or the lack thereof. During his post-National People's Congress press conference, Zhu reminded the world that debt as a propor...

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