Chinese Economy Can Avoid Hard Landing: FitchRatingsA new report by ratings agency Fitch is suggesting that despite some strucutural vulnerabilities, there still remains enough financial resources in China to avoid a 'hard landing' in the near-term.
In making the suggestion, Fitch notes China's banking system is still funded and financed through retail deposits.
Fitch also notes most of the banks, as well as their major borrowers, are state-run or state-influenced.
This suggests a loss of confidence among creditors which could create a financial crisis isn't likely.
Fitch also points to China's current account surplus, which is expected to exceed 300 billion U.S. dollars this year.
They say the same naive thing in the US and Japan.