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BRIEF-Moody's - Believe that China's authorities have the tools to prevent a financial crisis from materialising in the near future
May 26, 2016 / 4:36 PM / a year ago

BRIEF-Moody's - Believe that China's authorities have the tools to prevent a financial crisis from materialising in the near future

May 26 (Reuters) - Moody’s -

* Moody’s On China - Believe that China’s authorities have the tools to prevent a financial crisis from materialising in the near future

* Moody’s On China - Financial liberalization, particularly of China’s capital account, could weaken the authorities’ ability to manage systemic risks

* Moody’s On China - Premature or disorderly opening of capital account would increase likelihood of the banking sector experiencing liquidity stress

* Moody’s On China - Large debt overhang built up during post-2008 period to likely result in extended period of sub-par economic growth

* Moody’s on China - China could face several adverse consequences even if financial liberalization is stalled and a systemic crisis is avoided

* Moody's on China - Even in absence of systemic crisis, major imbalances created by rapid debt accumulation are likely to erode credit quality over time Source - bit.ly/1EHrfAw (Bengaluru Newsroom; +1 646 223 8780)

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