Financial systems in Asia have improved tremendously since the Asian Financial Crisis swept the region 20 years ago, but the world's second-largest economy, China, is presenting fresh risks, experts told CNBC on Monday.
The crisis was triggered by a devaluation of the Thai baht on July 1997, which sparked a contagion effect across the region.
Bangkok-based Paul Gambles, co-founder of investment advisory MBMG Group, said the root cause of the Asian Financial Crisis was the "American credit machine going into overdrive," and he added that the same phenomenon is happening in China right now as it faces a credit boom and a macroeconomic policy trilemma.
"If you want to have free market capital flows, you have to either let go the interest rates or let go the FX rates. China really doesn't seem to be learning that lesson at all, it wants to manage all three. The danger of repeat is in China right now," he said.