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IMD Professor Nuno Fernandes on worldwide market turmoil
The recent steep slides on global stock markets have been a long time in the making. As early as two years ago, it was becoming obvious that in addition to the contraction of global demand, as well as the general increase in the relative competitiveness of other Asian countries, China’s rapid rise was coming to a screeching halt and leaving excessive debt in its wake. In recent weeks, the Chinese market experienced its biggest weekly fall in 20 years, tumbling more than 15%. This volatility serves as a further warning: China is still an emerging market, and it has an immature financial system.
Excessive debt
Excessive debt is infecting every sector of...
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