China Will Tighten Policies to Cut Crisis Risk, Nomura Says

China will probably tighten policies this year to contain the growing risks of a “systemic” financial crisis, according to Nomura Holdings Inc.

China is displaying the same three symptoms that Japan, the U.S. and parts of Europe showed before their respective financial crises, economists Zhang Zhiwei and Wendy Chen wrote in a note dated yesterday. These signs are a rapid build-up of leverage, elevated property prices and a decline in potential economic growth, they said.