China’s unprecedented jump in new loans at the start of 2016 is fueling concern that excessive credit growth is piling up risks in the nation’s financial system. The increase in China’s debt relative to gross domestic product could pressure the country’s credit rating, Standard & Poor’s said on Tuesday, less than a week after the cost to insure Chinese bonds against default rose to a four-year high. Credit growth is storing up “big problems” in the economy that will weigh on the yuan and stocks, said George Magnus, an economic adviser to UBS Group AG. Mizuho Bank Ltd. warned that the risk of bad loans is rising and Marketfield Asset Management said China’s central bank may be losing its…
China Debt Binge Spurs S&P Warning as Magnus Sees `Big Problems’
