Property Market, Equities Top Four Major Risks in China: Pimco

Three months into China’s market turmoil early this year, the outlook for the world’s second-largest economy remains murky.

China’s repeatedly assured that the economy is not headed for a hard landing and growth will be between 6.5 and 7 percent this year. Private economists seem less confident.

Official GDP (gross domestic product) growth will likely end up in the 5.5 to 6.5 percent range amid headwinds, according to Luke Spajic, a portfolio manager at Pimco.

Spajic, along with this colleagues, identified the four big risks for the Chinese economy in a report released on Friday:

Leverage

China has accumulated over $21 trillion in debt since 2007 – more than one third of the world’s debt, said Spajic.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.