China's central bank chief warns of 'Minsky moment'

Beijing

CHINA'S central bank chief on Thursday issued a stark warning about asset bubbles in the world's second-largest economy, which looks set to clock its first acceleration in annual growth since 2010, driven by public spending and record bank lending.

Speaking on the sidelines of the closely-watched, twice-a-decade Communist Party Congress, People's Bank of China governor Zhou Xiaochuan spoke of the risks of a "Minsky moment" in the economy, referring to a sudden collapse in asset prices after long periods of growth, sparked by debt or currency pressures.

Mr Zhou's comments refer to a theory on prices derived by American economist Hyman Minsky and follow official data that showed China's economic growt…