China's debt levels pose stability risk, says IMF
Health check of financial system says reforms have not gone far enough and notes similarities to US before 2008 crisis
Fears that China risks being the cause of a fresh global financial crisis have been highlighted by the International Monetary Fund in a hard-hitting warning about the growing debt-dependency of the world’s second biggest economy.
The IMF’s health check of China’s financial system found that credit was high by international levels, that personal debt had increased in the past five years, and that the pressure to maintain the country’s rapid growth had bred an unwillingness to let struggling firms fail.
Source: The Guardian