China: Slowing Growth and Rising Debt

In FIS Group’s latest insight piece, Tina Byles Williams, CEO and CIO of FIS Group, a manager of U.S. and global developed, emerging and frontier markets equity portfolio strategies with over $4.5B in AUM, shares her insights on China’s slowing growth and rising debt.

China’s growth reduction (to around 6.5%) and restructuring, as well as the gradual depreciation of the RMB, as it decouples from the dollar peg will be fraught with policy missteps. The Chinese financial system, however, remains fenced off from the rest of the world by capital controls and is highly liquid, so the risk of systemic financial crisis remains low. If the renminbi does decline by another several percent, the main losers will be other...