M
ichael Pettis, a well-known expert on China's economy, has written extensively about the country's financial markets. In his analysis, he highlights several key issues that affect the stability and growth of these markets.

    One major concern is the large amount of debt held by Chinese households and corporations. This debt burden can lead to a significant increase in defaults, which could have far-reaching consequences for the entire economy. Additionally, the country's financial system relies heavily on state-owned enterprises (SOEs), which often receive favorable treatment from regulators.

    The Chinese government has implemented various policies aimed at stabilizing the financial markets and promoting economic growth. However, these efforts may not be enough to address the underlying structural issues that plague the system. As a result, Pettis argues that China's financial markets are vulnerable to significant disruptions in the future.