China by size the balance sheet, but those balance sheets are pretty much all in China. What the WSJ article refers to is really investment banking, a market fr

China by size the balance sheet, but those balance sheets are pretty much all in China. What the WSJ article refers to is really investment banking, a market from which Chinese banks are still pretty much non-existent. But the size of Chinese banks balance sheet is probably more of a problem than anything. They were not forced to apply tough international capital and are now over-leveraged. I understand China tried to forced them to deleverage, then got concerned by the impact on the economy, then made them re-leverage. But an over-leveraged bank is like a loaded spring. You don't want to remain to close to it for to long.