Top China paper warns of crisis risk over debt

BEIJING: China must turn off the taps of credit-driven growth to avoid a financial system crisis in the face of rising bad loans and other risks, the Communist Party’s official mouthpiece newspaper said on Monday, citing an unnamed “authoritative” source.The prominent article, in question-and-answer format, started on the front of the broadsheet paper and took up the entirety of page two.

China’s Communist authorities are trying to retool the economy away from the investment- and export-led growth of the past to one more led by consumer demand, and reform lumbering, loss-making state-owned enterprises to make the sector more efficient.