https://www.scmp.com/rss/322185/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Recent articles warn that China will soon face a banking crisis. Bad debt will cause Chinese banks to tumble, they say, with shock felt throughout the world. But these predictions misjudge the capacity of the Chinese government. Beware 2016, PwC cautions China’s banks Looming trouble doesn’t show in official data: non-performing loans comprise just 1.75 per cent of reported loans, a reasonable figure by international standards. Analysts worry the figures understate the problem, but Chinese banks... https://www.scmp.com/comment/insight-opinion/article/1959200/china-ready-any-banking-crisis-may-come?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1959200/china-ready-any-banking-crisis-may-come?utm_source=rss_feed Mon, 30 May 2016 09:08:23 +0000 Many economists believe China should curtail economic investment to make room for rising consumption, and that it should avoid debt. But because of the high tendency to save, high levels of investment are essential for China’s growth, including some financed by debt. Investment – private sector and public – means building facilities and infrastructure. It also provides critical support for consumption. In the most basic national economic equation, gross domestic production is the sum of four... https://www.scmp.com/comment/insight-opinion/article/1915180/high-levels-investment-and-debt-are-good-chinas-economy?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1915180/high-levels-investment-and-debt-are-good-chinas-economy?utm_source=rss_feed Mon, 22 Feb 2016 04:29:55 +0000