Fitch: China's investment-led growth model might be reaching its limit

01/9/2013 | China Daily (Beijing)

China's growth model, with its heavy emphasis on investment, is being called into question by Fitch Ratings. Fitch points to debt financing by local governments as well as the shadow banking system as worrying factors. Noting that China's attempts at rebalancing its economy are "not optional," Andrew Colquhoun, head of Fitch's Asia-Pacific Sovereigns section, said the process must be carried out over the long term, posing a challenge as "the debt issue is tightening constraints on the old investment-driven growth model."

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China Daily (Beijing)

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