High debt levels in China are a risk but an imminent global financial crisis-type implosion is unlikely, a Moody’s Investors Service economist said Tuesday.
Concerns over China’s debt buildup have risen in recent months amid a broader slowdown in the world’s second-largest economy.
Influential investors such as Kyle Bass and George Soros have warned of a credit crisis in China, with Bass noting the presence of “ticking time bombs” in China’s banking system.
These concerns have also been reflected in less enthusiastic assessments of China’s creditworthiness in recent months.
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