Of course there are many positive economic data about China, however, the country could be still at some risk, so China faces big challenges.
Besides a great number of structural issues, and the current slowdown, in big part, due to its demographics, there are other conjunctural problems imbricated with these structural issues.
1.-the risk of China’s property bubble. (We’ll talk about that in other article).
2.-local governments are over-indebted.
3.-The wealth management plans (WMPs), which are yield-bearing instruments sold by banks that do not have guaranteed principal, risking the system bank.
4.- the Chinese economy could overheat from an influx of capital, resulting in excessive credit growth.
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