China announces 6.7% Q3 GDP growth

The Chinese economy expanded at an annual rate of 6.7% in the third quarter, in line with the government’s full-year target, but exacerbating fears of inflated corporate debt levels and overheated property markets. Many analysts believe this year’s better than expected growth in China has been the byproduct of a dangerous expansion in credit, especially for real estate developments and state-backed infrastructure projects. “Credit growth continues to outstrip nominal GDP growth, building on an already enormous base of outstanding debt,” said Eswar Prasad, a China finance expert at Cornell University to the Financial Times. More than 20 urban governments across China have recently introduced measures to restrain house prices, which over the past year have increased by as much as 25% in cities such as Beijing and Shanghai.