Expert Cites Top Three China Risks

There are myriad ways to view and understand China these days. And one that is quite common amongst everyone from diplomats to investors to businesspeople is seeing China as a high risk, high reward proposition. There is some validity to this, simply because, yes, the gains can be great, but the work is hard and success isn’t guaranteed. The really tricky part is identifying, prioritizing, and quantifying the actual risks one faces in China. Yes there are risks in the real estate market, the shadow banking sector, and with ethnic minorities, but here are three that recently came up in a conversation with a top Sinologist.

1. Urbanization
2. Air Defense Identification Zone
3. North Korea

via China’s 3 most critical risks – Term Sheet

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza