IMF China Report: Debt Poses Significant Financial Risk

The IMF report said authorities at the highest level had made financial stability a top priority this year and were "taking steps to address vulnerabilities" but added that some of the underlying causes of risk were yet to be fully addressed. More capital is justified for the largest banks due to their systemic importance and interconnectedness, the International Monetary Fund said.

An over-dependence on debt to fuel China's growth and a fragile financial sector will exacerbate an economic downturn; the effects of which could be felt worldwide. Corporate debt was now at 165 percent of GDP, the report said, while household debt had also risen quickly over the past few years. "Credit growth has outpaced GDP growth, leading to a large credit overhang".

Stress test results revealed widespread under-capitalization of banks other than the Big Four banks under a severely adverse scenario.

The IMF said it had carried out stress tests on dozens of banks and that the big four banks had adequate capital but "large, medium, and city-commercial banks appear vulnerable".

"Implicit guarantees to SOEs [state-owned enterprises] need to be removed carefully and gradually", she said. There had been a commitment to supporting growth and jobs, coupled with pressures to keep non-viable firms open.

Mario + Rabbids: Kingdom Battle Getting Versus Mode On December 8, 2017
The characters players can select in Versus mode will be heavily upgraded with selectable, unlockable loadouts and variants. Mario + Rabbids Kingdom Battle Versus mode will restrict each player to just three actions per turn.

The IMF recognized the fast development of China's financial market amid the steady economic growth and referred to it as "a large, dynamic and interconnected financial system". Supervision of banks had been tightened up but demand for high-yield investment products had led to attempts to escape regulations though increasingly complex investment vehicles.

The report said reining in excessive growth would require China to reduce emphasis on high GDP projections in national plans, which have spurred local authorities to set high growth targets. "The Chinese authorities have worked hard to keep pace with growth and innovation, but as in all countries, many gaps remain", the International Monetary Fund said.

China's central bank, the People's Bank of China, said overall a series of reports published by worldwide bodies including the IMF were "professional and valuable assessments".

China's economy beat expectations by growing 6.9 percent in the first three quarters of the year, though several global credit agencies have sounded the alarm about rising debt.

Related News:

  • Ciena (CIEN) Releases Earnings Results, Misses Estimates By $0.04 EPS

    Ciena (CIEN) Releases Earnings Results, Misses Estimates By $0.04 EPS

    Jefferies maintained Ciena Corporation (NYSE: CIEN ) rating on Monday, December 14. 28,887 were accumulated by Us Bancshares De. Note, this compares with a consensus analyst forecast of 0.44 in earnings per share for its next fiscal quarterly report.
    Crash in Lower Manhattan injures 3 pedestrians

    Crash in Lower Manhattan injures 3 pedestrians

    Cops have said the vehicle was involved in at least two crashes before coming to a stop near Liberty Street and Broadway. Initial images from the scene showed a black sedan with a smashed front end lying between crumpled bikes.
    The Founder of Vine Hinted at Vine 2.0

    The Founder of Vine Hinted at Vine 2.0

    The 6-second format turned out to be suitable for a whole new subculture of weird and insane performances with one's own identity. Nothing concrete exists, as a product, or as a plan to keep the service's potential sequel from succumbing to the same fate.
  • Turkey detains 17 for 'providing U.S.  with information' for Zarrab case

    Turkey detains 17 for 'providing U.S. with information' for Zarrab case

    Under questioning by Fleming, Zarrab said he attended meetings with Atilla a "handful" of times during that period. A partner at the firm Morvillo Abramowitz, Anello declined in an email to provide additional comment.
    AG Schneiderman Statement On Concealed Carry Reciprocity Act

    AG Schneiderman Statement On Concealed Carry Reciprocity Act

    This is completely false. "And if they were lawfully possessed in that state, bring them here into Manhattan, into Times Square". Just months after the nation's deadliest mass shooting in Las Vegas, the House passed a bill that would expand gun rights.
    Striking images show California wildfires from space

    Striking images show California wildfires from space

    Residents living west of I-405 should brace for evacuations, in case flames jump the freeway, officials said earlier on Wednseday. The blaze was so close to the road that both directions of the freeway were closed, and homes were evacuated in Bel-Air.
  • Starbucks Christmas Tree Frappuccinos Are Here - But Only For A Few Days

    Starbucks Christmas Tree Frappuccinos Are Here - But Only For A Few Days

    In preparation for the upcoming holidays, the chain is offering another sweet concoction with its Christmas Tree Frappuccinos . But then the managers remembered that they'd have to make the special matcha whip cream and crushed my hopes and dreams.
    David Cassidy Cuts Daughter Katie Out of His Will

    David Cassidy Cuts Daughter Katie Out of His Will

    Meanwhile, Cassidy also mentioned his three half siblings in his will, and they will receive anything "music memorabilia". Former teen heartthrob David Cassidy left nothing in his will to his daughter " Arrow " actress Katie Cassidy .
    Huawei releases Android Oreo update for Mate 9, Mate 9 Pro

    Huawei releases Android Oreo update for Mate 9, Mate 9 Pro

    First of all, users running B322 of Android Oreo beta program are first to receive the update, beginning December 5. The beta update of Android 8 .0 Oreo update was ended in early November month for the Huawei Mate 9 smartphones.
  • Police Identify Suspect in R. Kelly Burglaries

    Police report that almost everything, including his furniture and electronics, were stolen from both of his properties. Kelly's housekeeper called the police to say she found the house emptied of belongings when she came to clean the home.
    20-year-old Florida man was behind Uber hack

    20-year-old Florida man was behind Uber hack

    Sources told Reuters that then-CEO Travis Kalanick was aware of the breach and "bug bounty" payment in November of a year ago . Uber hasn't identified the hacker it paid $100,000 to last year, but Reuters reports its a 20-year-old man in Florida.
    Neil Patrick Harris Fills In for Jimmy Kimmel & Delivers Opening Monologue

    Neil Patrick Harris Fills In for Jimmy Kimmel & Delivers Opening Monologue

    He didn't have to do that. "Our family has excellent health care; he had nothing to gain from that". Last month, Jennifer Lawrence, Channing Tatum, Shaquille O'Neal and Dave Grohl subbed for Kimmel.


Most liked

What's Incyte Corporation (INCY) Downside After Reaching Yearly Low?
Cooke & Bieler Lp decreased Aercap Holdings N.V. (NYSE:AER) stake by 75,590 shares to 2.61M valued at $121.15 million in 2017Q2. Garrison Bradford & Associates Inc sold 6,350 shares as the company's stock declined 12.57% while stock markets rallied.

Cubs Sign Right-Hander Tyler Chatwood To 3-Year Deal
Chatwood, who turns 28 next week, was 8-15 with a 4.69 ERA in 33 appearances, including 25 starts, for Colorado previous year . The Chicago Cubs agreed to a three-year contract with right-hander Tyler Chatwood on Thursday.

French-Elvis rock icon Johnny Hallyday dies aged 74
Celine Dion wrote: "I'm very sad to hear the news that Johnny Hallyday passed away". "He was a giant in show business", she said. His capacity to sing a wide variety of music genre is often cited as one of the reasons for his tremendous popularity in France.

Overwatch's Winter Wonderland event returns December 12
Players from across PlayStation 4, Xbox One , and PC will all be able to jump into Overwatch's wintery world next week. The person playing as Winston has to run around the map picking up meat to build up his ultimate ability, Primal Rage.

WH Pushes Back on 'Ridiculous' Health Questions Following Trump's 'Slurred Speech'
The statement seemed, on its face, ridiculous - Gerald Ford was a gifted athlete prior to being elected, George W. Bush's passion for running kept him trim and his heart rate low.

Warning about flu season issued
Flu shots can be obtained at most pharmacies, walk-in clinics and doctor's offices, free of charge. It takes about two weeks after vaccination for antibodies to build up and protect against the flu.

LaVar: Sons LiAngelo, LaMelo sign with agent
LiAngelo Ball is not considered an National Basketball Association prospect, but LaMelo Ball might be, depending on his development.

Some Nigerians in Libya not willing to return - Charge d'Affaires
Fachano added that there were challenges in extracting Nigerians from Libya which required the assistance of the government. He also confirmed that four of the returnees had medical cases and were promptly taken away on an ambulance for treatment.

Ford Electric Crossover Production Moving to Mexico
Sending the electric vehicle to Mexico, where labor costs are lower, will help the business case for the costly model. The automaker will begin testing the vehicle in an unnamed city next year. "We'll move people and goods".

Jaguar Land Rover sales up 10 percent at 52332 units in November
Tata Motors luxury carmaker Jaguar Land Rover (JLR) reported 10% year-on-year (YoY) growth in its November month with sales of 52,332 units.

Techland Announces Dying Light: Bad Blood, PvP Expansion Due in 2018
Make sure you have enough evacuation points once the chopper arrives, and don't get killed as you race to the extraction zone. Bad Blood will offer "violent and dynamic" online matches, and wants PC players to help test the expansion out online.

Capcom announces Devil May Cry HD Collection
Since 2013's DmC: Devil May Cry reboot, developed by Ninja Theory, everyone's favorite pistol slinging half-demon has been missing in action.

Everton boss Allardyce to miss Europa League game at Apollon
He lead the club to the quarter finals of the Champions League and staved off relegation before being sacked after a poor start to this season.

What Are Analysts Report About UnitedHealth Group Incorporated (UNH)
Current trade price levels places VLO's stock about -1.68% away from the 52-week high and closed 40.01% away from the 52-week low. California Public Employees Retirement System acquired 50,900 shares as Altisource Residential Corp (RESI)'s stock rose 7.36%.

Square Enix Says New Tomb Raider Game is Coming
As such, don't expect any Tomb Raider announcements today or during the Playstation Experience 2017 event. Honestly, we wish we could share it with you right now, but we're taking a new approach this time.