Moody's Warns China's Rising Debt Levels Echo 1990s Japan Bubble, Raising Default Risks
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Moody's warned that China's rising debt levels echo Japan's bubble economy of the 1990s, raising default risks.
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There are concerns over hidden local government and infrastructure debts that lack transparency.
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Signs show China is prioritizing stimulus over vital reforms to address its debt troubles.
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China's deflator has been negative for 2 straight quarters, a rare occurrence signaling deflationary troubles.
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No major economy has avoided a financial reckoning from excessive debt buildup; hopes are China can break the cycle.