Economic growth in China could stall next year, the chairman of investment bank Morgan Stanley Asia has warned.

Speaking in Shanghai at the weekend, Stephen Roach said that China faces “tough challenges in years ahead”. 

 “China’s growth model is much more about supply than demand,” Roach said, and it is unsustainable to depend on exports when the global recession lessens demand for those goods. “It’s not a sustainable model for China. It’s not a sustainable model for any nation.”

Roach’s comments come despite economic growth in China of 8.9% in the last quarter, fuelled by a government stimulus package and $1 trillion (£613bn) of new bank lending.