China definitely has a financial crisis in its future — the only question is the magnitude, says Prasenjit Basu, founder of Real-Economics.co.

"If it happens soon, its effects can be contained," he writes in the Financial Times. "But, if policymakers use further doses of stimulus to postpone the day of reckoning, a severe collapse will become unavoidable within a few years."

Easy monetary policy has played a major role in China's growth story, Basu explains. M2 money supply has tripled in the past six years.

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Meanwhile, the population is aging. In 2013, the working-age population decreased for the first time, and the trend will continue, he notes.

"Unless the country can keep lifting the labor force participation rate (for example by getting more women into the workforce or persuading older people not to retire), China will struggle to expand its labor force by even 1 percent per year," Basu argues.

"To sustain economic growth of more than 7 percent, productivity would need to grow by 6 to 7 percent a year across the entire economy. This would be a tall order in any country. In China, where the labor-intensive services and agriculture sectors make up half the economy, it is well-nigh impossible," he adds.

"The country suffers from excess capacity in most industrial sectors," Basu states. "Yet investment in fixed assets continues to grow at double-digit rates."

Already, GDP growth slowed to an 18-month low of 7.4 percent in the first quarter

The government's typical response to slowing growth is policy stimulus, and that's a problem, he insists. "To avert a wider deflationary spiral, the country needs to wean itself off the false cure of perpetual policy stimulus," he says.

Julian Evans-Pritchard, an economist at Capital Economics in Singapore, doesn't see a big stimulus package coming.

"Policymakers seem pretty comfortable with the current pace of growth," he tells Reuters. "I don't think they're going to announce any further significant measures to support growth."

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