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

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam