China’s Debt challenge continues…
Estimates suggest that in 2015 Chinese Economy grew only by 6.9 %.
As expected the real-estate is stuttering with FSI much available than prudence would require.
Though during April, 2016, the Shanghai Composite rose above 3000 mark with a jump from its February performance, Moody’s as well as Standard & Poor’s downgraded the credit rating to negative.
The debt ratio is currently at 250 % of its present GDP, in English, it means China has borrowed at 2 ½ times more than its GDP.
Western Financial Expert Agencies keep suggesting about debt re-structuring as a measure to set right the scenario and accept a slower growth rate. But no suggestion has come forward under the mid-reef bulging real estate scenario.
Worry is a moderate way to put it.
Do not expect any of this in our Newspapers…
yudhampragya 