China's Guaranteed Bubble: How implicit government support has propelled China's economy while creating systemic risk

The truth about China s financial industry and the growing bubble that s guaranteed to blow it apart

In recent years, the Chinese economy has been fueled by the implicit guarantee of major banks and local governments by the nation s central government. The resultant bubble has led to the emergence of a large shadow banking industry that poses major risks to China s real estate market, speculative stock investments, state-owned enterprises, and more.

It s not a matter of if China s bubble will burst. It s a matter of when.

This eye-opening book from renowned financial scholar Ning Zhu provides a provocative in-depth analysis of China s current economic practices and the profound dangers they pose as well as a powerful wake-up call to investors, regulators, and the entire financial industry. Zhu s book is packed with startling revelations, including:

* The enormous impact of China s implicit guarantees on economic growth and what will happen when those guarantees are gone

* The ever-increasing size of China s shadow banking industry and how it s just the tip of the iceberg

* The once-reliable strength of China s real estate and stock markets and how they re threatened by government distortion

* The latest financial innovations and channels and how they are circumventing regulations and triggering unprecedented risks

Filled with fascinating case studies, worst case scenarios, and a well-argued case for much-needed reforms, Zhu s enlightening book is a must-read for anyone with interests or investments in China s rapidly changing economy. You ll find intriguing new perspectives on traditional growth models, innovative solutions for overcapacity problems, and revealing new stats on so-called Voodoo Statistics. You ll get a glimpse behind the curtain of the unknown unknowns of China s implicit guarantees and learn just how risky these government policies can be. Most importantly, Zhu s book provides solid recommendations for diffusing the time bomb these guarantees can and will set off.

Brilliant, incisive, and ultimately optimistic, China s Guaranteed Bubble will incite a much-needed call for change and set us on a new path of prosperity and growth for China, the economy, and the world.