Even by emerging market economy standards, China’s development has been characterised by very high levels of investment, underpinned by a high and rising rate of household saving (Graph 3). Graph 2  Graph 3  Against this background, the Chinese Government’s stimulus policies adopted amid the global financial crisis led to a boom in debt-funded infrastructure investment and construction of residential and commercial properties.
While these policies supported China’s economic activity and promoted urbanisation, they also exacerbated what was arguably an already “unbalanced” pattern of growth and the rise in debt contributed to the emergence of substantial financial risks. BIS central bankers’ speeches  3  Moderating growth in China Despite the stimulus following the global financial crisis, annual growth peaked in 2007 (Graph 4).