China announced that its economy grew by 6.7 percent. However, the concerns about its economy still persist. Billionaire investor George Soros said that the current situation of the Chinese economy is akin to the 2008 financial crisis in the United States.

Referring to China's growing credit numbers, Soros said that the situation "eerily resembles what happened during the financial crisis in the U.S. in 2007-08, which was similarly fueled by credit growth."

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New credit in China stood at 2.34 trillion yuan last month ($362 billion). The figure far exceeds the median forecast by Bloomberg, which pegged the number at 1.4 trillion yuan. 

China's current debt is roughly twice the size of its GDP.  Its social financing registered 15.8 percent growth in March to touch $22.4 trillion compared to its GDP of $10.4 trillion.

This is not the first time Soros has raised such concerns. Earlier this year, he  predicted that Chinese economy is bound to face a hard landing. This time, Soros states that China's debt based growth is unsustainable and that it feeds on itself. The prolific investor did not provide any timeline but said that "It can reach a turning point later than everyone expects. Most of the damage occurred in later years. It's a parabolic cycle."

While China's recent numbers have raised many eyebrows,  analysts such as Templeton Emerging Markets Group's Executive Chairman Mark Mobius are rather unfazed. Mobius, in an interview with MarketWatch, said that hedge-fund managers should guard against reading too much into the country's economic turbulence.

Tagsgeorge soros, china, Economy, debt