Private investors should steer clear of China's mammoth banks, whose precarious state pose a risk to the world economy, an asset manager specializing in Asia told CNBC on Wednesday.
"Personally, I think the banks are un-investable — as a minority private investor you are likely to be wiped out, maybe many times over," Tiburon Partners' Stewart Paterson said.
"These are organs of the state; they are there to fulfill the agenda of the Communist Party of China and why anybody would want to be a minority shareholder in them I'm not sure."
Paterson joined Tiburon in 2013 to manage its Tiburon Taurus Fund, a long-short Asia-Pacific ex-Japan fund.
On Wednesday, he estimated that China's banking sector was 3.5 times the size of its overall economy. Its "Big Four" commercial banks are state-controlled and are the world's largest, according to Forbes, based on a composite of revenue, profits, assets and market value.