Mubasher: China’s debt is expected to increase in 2019, but the people republic may have better risk management this time.
The world’s second-biggest economy’s debt is forecast to account for account for 3% or 4% of its gross domestic product (GDP).
"This time, it's a bit different because they are using more manageable, or transparent leverage rather than re-opening shadow banking," CNBC reported, citing Morgan Stanley's Chief China economist, Robin Xing, as saying.
Shadow banking term represents non-regulated banking activities conducted by financial firms.
China’s government is increasing the quota of the state-backed local special bonds, Xing added.
The so-called trade war with the US has been pressuring the Chinese economy, hindering Beijing’s efforts to boost the economy.
Xing commented: "By the second quarter of this year, we think that real economic activity will start to improve, given that easing [will] start to work."