China’s Communist Party leadership faces a dilemma over where to set a growth goal for 2014 as President Xi Jinping wrestles with sustaining expansion while limiting debt risks, environmental damage and social unrest.
A Chinese manufacturing slowdown fueled speculation that President Xi Jinping’s officials will switch focus in coming months from taming credit growth and financial risks to supporting economic expansion.
Default risk for China’s banks climbed to a six-month high as a factory slowdown added to concern over what Pacific Investment Management Co. has dubbed the “mystery meat” in the world’s second-largest economy.
Borrowing costs for China’s financiers of roads, subways and sewage plants dropped after a troubled trust product was bailed out, averting a threatened default that added to concern about record local debt.
The cost of insuring China’s bonds against non-payment fell the most since September and debt linked to municipalities gained after the bailout of a troubled trust product averted a default that may have spooked markets.