Latest News:  


Boao forum experts warn of further debt crisis


20:49, April 08, 2013

BOAO, Hainan, April 8 (Xinhua) -- A fresh debt crisis may break out in the short or medium term, economic experts have warned at the Boao Forum for Asia, which opened on Sunday in south China's Hainan Province.

The world's major economies are faced with grim economic prospects, with looming uncertainties for the Eurozone and rising levels of debt risks in the United States and Japan, said forum delegates, adding that further crisis may also haunt emerging economies including China.


They discussed how the prolonged Eurozone crisis -- accented by the recent sovereign debt and banking crunch in Cyprus, where large bank depositors were forced to take a sizeable loss to recapitalize the country's banking system -- showed the bloc of countries are still at an economic impasse.

Gary Parr, deputy chairman of global investment bank Lazard Ltd., said many European countries are now suffering financial crises, and these problems are spreading from one country to another.

The zone's banking system is still crippled by inadequate capital, and the European Central Bank is not a powerful regulator, according to the investment banking veteran, who stressed that unified regulation is needed for repairing market confidence.

Tom Byrne, director of analysis for Moody's Sovereign Risk Group in the Asia and Middle East regions, agreed that more work needs to be done in the Eurozone to eliminate systemic obstacles.

The entire bloc should act like Germany, ushering in structural reforms to revive growth and restore market faith, Byrne said.

Furthermore, the Eurozone crisis is only one link of a more extensive debt crisis, noted Zhang Qizuo, an economist working on the strategic development of the G20 and emerging economies.

Both Europe and Asia are linked by the same chain, Zhang said, adding that the crisis in the Eurozone will have an impact on China's real economy, stock market as well as the real estate sector.

Echoing Zhang's remarks, Byrne also said that the Eurozone crisis may be transmitted to the rest of the world.

Euro assets, held by governments outside the zone and commercial banks around the world, would shrink, and major financial markets would have to take the strain for embattled Eurozone banks as they cut their overseas businesses, the Moody's analyst explained.

A foreseeable fiscal austerity in Eurozone member states may send them into long-term recessions, affecting other countries' exports to Europe and stagnating economic recoveries, Byrne added.

【1】 【2】 【3】

We Recommend:

Photo Story: Bittersweet life of auto model

Top 10 richest people in Beijing 2013

34th Bangkok Int'l Motor Show to kick off

Beijing’s second-oldest McDonald outlet closed

Top 10 world's youngest billionaires 2013

China's solar giant declares bankruptcy


Leave your comment0 comments

  1. Name


Selections for you

  1. Ships of South Sea Fleet return to home port

  2. Soldiers trained to take over security duties from NATO

  3. Pakistan to hold parliamentary elections

  4. Fish kill still mystery as 250kg hauled out

  5. 3 rescued from flooded coal mine

  6. Prevention efforts to fight against H7N9 virus

  7. Superstars from CCTV Young Singer Competition

  8. Migratory birds back to Xinjiang

  9. Meeting for private sector at BAF

  10. BFA 2013 kicks off

Most Popular


  1. Today's youths will prove their mettle
  2. Chinese spend less on hotels, still flash the cash
  3. Soros upbeat on China's economic transformation
  4. Chinese innovations to benefit the world: Bill Gates
  5. Reflecting on rules that allow bad apples
  6. Cold food honors loyal man with a warm heart
  7. Safety concerns over state-owned coal mines
  8. New age of gender blending in China
  9. 'Tomb Sweeping Day' distorts meaning of Qingming
  10. Xi's visit starts new era of China-Africa relations

What’s happening in China

Life aboard a fishing boat under bridge in city of Chongqing

  1. Boy, 4, recovers from H7N9
  2. Red water leads to resignation, public apology
  3. Father accused of killing 4-yr-old daughter
  4. Dead fish in Shanghai prompt safety fears
  5. Vendors keep selling pet birds despite ban