In contrast to these skeptical views, others argue for the ethical merits of market-driven outcomes posited on the value preferences of individuals as reflected in their choices in a free marketplace. The ultimate arbiter of an economy’s ethics is, or should be, the material welfare of the individuals in a society.
Excessive liquidity, inflation, asset price bubbles, periodic non-performing loans and other risks may build up and undermine asset quality and resilience of China’s financial sector.