China Debt a Risk but Authorities Are Handling It: Moody’s

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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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
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 Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. 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.