Asia’s next challenge, Part 2

汇丰银行Dinkar Pawan,Frederic Neumann,Ronald Man

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　　Hardly a stunning revelation. Turn interest rates as low as possible, add plenty of liquidity and confidence to the mix, and, inevitably, debt begins to build. This, in essence, is what has occurred in emerging Asia over the past several years. 　　In a way, it was just the recipe that the region, and the world more broadly, needed. Without growing leverage, Asia would hardly have been able to sustain its growth run amid plunging demand in the West. 　　The question now is whether a tipping point has been reached. Debt cannot grow indefinitely, and funding will not remain so cheap forever. This summer’s turmoil was a powerful reminder of the risks that leverage-fuelled growth entails