China has a debt problem, and if it continues to place short-term growth goals ahead of managing longer-term financial stability risks, it runs the risk of suffering a sharp growth slowdown, or worse.
Thats the latest assessment from the International Monetary Fund (IMF) who describes Chinas current credit growth trajectory as dangerous given the precedent set by other nations where boom-bust credit cycles have occurred in the past.
International experience suggests that Chinas credit growth is on a dangerous trajectory, with increasing risks of a disruptive adjustment or a marked growth slowdown, the IMF says.
This chart from the group explains why its concerned.
A whole lot of debt has been required in …
Read the full article at: https://www.businessinsider.com.au/2-charts-that-show-the-risk-of-a-financial-crisis-in-china-is-growing-2017-8