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Economic Imbalances Still a Concern in China

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Credit is fueling China's growth. It takes three units of credit today to generate one unit of GDP, up from over one about a decade ago.

Ratings firm analyst sees stable outlook for China in 2017 but warns things could change quickly if economic imbalances continue.  "A rise in financial fragilities."

"The concern in China is high and stable growth has been accompanied by a rise in imbalances in financial fragilities one of which is a buildup in debt, which is now 200 percent of GDP or higher depending on how you measure it," said Stephen Schultz, the head of APAC sovereigns at Fitch Ratings who spoke yesterday on CNBC from Hong Kong.

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