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China Entering Demographic Danger Zone, BOJ Official Says

China is entering a “danger zone” where a financial crisis may become more likely because of increases in loans and property prices coinciding with an aging of the population, a Bank of Japan official said.

“If a demographic change, a property-price bubble, and a steep increase in loans coincide, then a financial crisis seems more likely,” BOJ Deputy Governor Kiyohiko Nishimura said in a speech for a conference in Sydney, posted on the central bank’s website today. “And China is now entering the danger zone.”