China’s debt problems will take years to resolve: analysts

China’s economy will not crash but property and local government debt challenges are undermining a country whose GDP is still growing at around 5% a year.

There are serious challenges in China’s property market and local government debt, but the Chinese government is capable of solving them, according to expert analysts.

However, it will take years to resolve these deepseated problems, which will meanwhile hurt other sectors of the Chinese economy, they said. And this week on December 5, rating agency Moody's downgraded the outlook of China's credit ratings to negative from stable citing structural concerns in the economy inlcuding local governmenr debt, slower growth and the downsizing in the property sector. 

Debt for the central government is a small issue, but for some local governments, it may take five years or...

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