American financial giant JPMorgan sent out warnings against China, saying almost $400 billion debts in China are at risk of default.
The bank said China might face a “vicious cycle.”
China’s largest private finance company, Zhongzhi Capital, has been missing payments on high-yield investment products, and its prompted concerns over a potential domino effect.
Local media have called the firm the “Chinese Blackstone.”
JP Morgan estimated that approximately 13 percent of China’s total assets possess heightened default risks due to their ties to the company.