UK faces risk from slump in China, warns Bank of England

Financial links to Hong Kong mean that Chinese slowdown could have serious UK impact

The Bank of England has warned that the health of China's economy poses a greater risk to the UK's financial stability than previously realised.

New analysis from the Bank has found that a sharp economic slowdown in China would have a serious impact on the UK. If China's credit boom blows up, Britain would suffer serious economic harm, it says, adding: "China's credit boom is now one of the largest and longest running ever recorded. Indeed, rapid credit expansions, such as China's, have typically preceded financial crises."

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