Economics
China Fault Lines: Where Economic Turbulence Could Start in 2016
- Dollar strength, quickening capital outflows among key risks
- Corporate defaults may profilerate, triggering more bad loans
China's Challenges: Key Themes to Watch in 2016
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China’s leaders are striving to cut leverage while restructuring growth away from an over reliance on investment and toward greater consumption and services.
Sounds simple. But there’s a risk the transition triggers a steeper slide in growth in 2016. Things could also go awry if there’s an acceleration of capital outflows, corporate defaults that trigger more bank bad loans, or increased turbulence in the shadow banking industry, according to economists and analysts interviewed by Bloomberg.