BCO CONFERENCE – The next big global crisis could be in China, and led by the property sector, according to the former head of World Economic Forum’s global risk network.
Thierry Malleret said critical reforms were being put in place in Europe, adding: “The greatest risk at the moment is a run on the banks and it could develop very fast unless the ECB decides to invest infinite liquidity into the system, which is in itself risky.
“But once this acute episode of crisis comes to an end, Europe will be in a much better state than it is today. It will be much more competitive.”
Malleret, who now advises high net worth individuals, said wealth was moving west not east, as investors sought security.
“It might be that the big next crisis is China, not the eurozone. Most likely the next crisis in China will be in the real estate sector, which is sinking in the sand of liabilities.
“I don’t see many Europeans relocating to China or India. But I can see a huge number of families from Indonesia, from China, from Russia, from Turkey moving to Europe.
“My advice is to follow the flow of money of wealthy families and it’s definitely coming our way.”
damian.wild@estatesgazette.com
