China should prioritise financial stability above development goals, as pursuit of regional growth targets and helping firms avoid heavy job losses had led to a surge in debt, particularly at local government level, the International Monetary Fund said. Noting a lack of coordination and inadequate systemic risk analysis in a report released on Wednesday, the IMF also recommended the formation of a financial stability sub-committee comprising the central bank and three financial regulatory agencies, and an increase in staff for the banking watchdog. Since the IMF's last ...
China must prioritise financial stability over rapid economic growth: IMF
China's credit-to-GDP ratio is very high by global standards and consistent with a high probability of financial distress, the IMF said