China's debt-fueled stimulus imposes risks

China's long-term risks could increase, amid the nation's attempts to boost headline growth, Moody's Investor Services said today.

Moody's rates China's growth at 6.3%

The rating agency highlighted that should it be a continuation where the increase in debt supports growth, China could face wider problems in the future. Moody's kept its forecast for growth at 6.3%.

Amid the nation's growth cooling to 6.9% for 2015, China's target for 2016 was set at 7%, from 6.5%.

Furthermore, the government's officials and policymakers are concerned about the probable financial and systemic risks, the economic recession, and the excessive leverage that could grow imposing further pressures on the nation.

Moreover, the debt-fueled stimulus that supports the economy could be an obstacle to China's financial sustainability and long-term stability.

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