Morgan Stanley: China Outlook Even Worse than Imagined

The worst of the Chinese economic slowdown is likely still ahead because of the nation’s debt, according to a senior Morgan Stanley investment strategist.

“China, to try and sustain its growth rate in the post-financial-crisis era, has engaged in the largest credit binge of any emerging market in history,” said Ruchir Sharma, head of emerging markets and global macro at Morgan Stanley Investment Management,

Sharma, speaking Tuesday at the Global Private Equity Conference in Washington, D.C., predicted that the credit boom would cause problems.