Local debts not the real risk

Most debts raised by local governments and companies in China are used for investment. This is different from the debts of some countries, says an article in People's Daily.

Some Western media said the slowing economy and deflation pressure are pushing China to the brink of a debt default cliff.

Although some local government, housing market and shadow banking debt risks occasionally appear, the whole economy is still healthy. The index of financial agencies is fine. The operation of the financial sector is stable; the overall financial risks are under control; and China has the ability to ensure that no regional and systemic financial risks arise.