SINGAPORE (Reuters) - Morgan Stanley former star economist Andy Xie warned of an imminent stock market crash in China — but still hopes to raise money to invest in the country.

Xie, who attracted a wide following while he was at Morgan Stanley because of his often contrarian views on China’s economy and stock markets, also warned that the global boom in equities would be over by 2008 and that this would coincide with a worldwide recession.

The recession would start from the United States and spiral down into Asia where exporters would be hit, Xie, 46, told Reuters in a telephone interview.

“I think it’s going to be bust very soon,” Xie said, adding that a combination of excess liquidity, rising inflation and rich valuations would result in a global crash soon.

“People will be surprised. When the end comes, it’s going to be pretty bad,” Xie added.

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Xie said the Chinese government understood the importance of limiting the bubble in the market, but was reluctant to implement more forceful measures, fearing a political backlash.

“College students are putting their tuition money into the market…stroke-stricken retirees get wheeled into branches of securities firms to trade,” Xie said in his SCMP article.

“People are not paying attention to anything else,” Xie told Reuters.