George Soros sees financial crisis akin to 2008

George Soros - Festival Economia 2012

Legendary fund manager George Soros has said that global markets face a melting pot of risks, and the environment is eerily similar to that of the financial crisis in 2008.

Soros, the man who broke the Bank of England with his 1992 trade against the sterling during Black Wednesday, said China is struggling to move away from export-led growth and towards a more sustainable, domestic consumption-led economic model.

Speaking in Sri Lanka, he argued that the decision by the People's Bank of China to let the renminbi move more freely is transferring this risk to the rest of the world. The developing world also has to contend with the return to positive interest rates.

Read more: Why it's time for investors to be more mature about China

"China has a major adjustment problem," Soros said, according to Bloomberg News.

"I would say it amounts to a crisis. When I look at financial markets there is a serious challenge which reminds me of the crisis we had in 2008.

It comes as global markets are being beaten by concern over how quickly China's economy is slowing. Its stock markets were suspended after just 870 seconds of trading today, the second time this year, after the central bank accelerated the depreciation of the yuan.

Regional currencies buckled while China's blue-chip CSI 300 index down 7.21 per cent at 3,284.74 points. Meanwhile, the Shanghai Composite Index shed 7.32 per cent at 3,115.89 points, while Hong Kong's Hang Seng index was 2.75 per cent lower at 20,403.90 points.

Full story: George Soros sees financial crisis akin to 2008: City A.M.

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