He adds: “Since the global financial crisis, activity has been too dependent on credit and investment, including in real estate. In the past year, the authorities have moved on several fronts to begin addressing these vulnerabilities, such as in ‘shadow banking’ and on local government debts, and we welcome these efforts. Nonetheless, continuing reliance on credit-fuelled growth means that risks are still rising, and although the government still has sufficient buffers to prevent a disorderly adjustment and sharp growth slowdown in the near-term, continued efforts to reduce vulnerabilities are a high priority.”
Nyree Stewart is features editor at Investment Adviser
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