Skip to content
Subscriber Only

China Shows ‘Appetite for Pain,’ Says Banking Analyst Who Warned on Debt Binge

  • Ex-Fitch analyst known for debt warnings comments in interview
  • Economy’s strength gives Chinese leaders opportunity to act
1490244269_shanghai lede
Photographer: Johannes Eisele/AFP via Getty Images

Charlene Chu, a banking analyst who made her name warning of the risks from China’s credit binge, said the country’s leaders are showing a “surprisingly high appetite for pain” with its recent crackdown on leverage in the world’s second-largest economy.

China’s leaders have “a window of opportunity” to push through their curbs because of the strength in the real economy, Chu, a senior partner at Autonomous Research, said in an interview last week in Hong Kong. Based on Chinese statistics bureau data, Chu estimates that the country’s annual nominal gross domestic product is growing faster than 9 percent.