# Professor Robert Engle ​discusses the impact of volatility in China and on global financial stability

1 Faculty News November 5, 2015 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg_0.jpg?itok=qy2YlnxP)>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/videos/2015-11-05/what-do-we-get-wrong-about-the-vix-) -- "I worry a lot about the Chinese banks. ... The capital needs of Chinese state-owned banks have been increasing very steadily since the financial crisis. China is loaded with debt. It's being issued back and forth between the banks and state-owned enterprises and the municipal governments and many of these are not very credit worthy anymore. Yet everything is guaranteed by the government. So, the banks don't see it as a big risk, but the stock market doesn't see the banks as that good of an investment."

[Watch the video](http://www.bloomberg.com/news/videos/2015-11-05/what-do-we-get-wrong-about-the-vix-)

Additional coverage appeared on [Yahoo! Finance](http://finance.yahoo.com/video/wrong-vix-114220468.html).