Opinion: China's economy remains stable
According to the respected China economist Yu Yongding, despite a further slowdown in Q1 (GDP +7.4%), China will not face a collapse as some pessimistic observers warn of. In his view, complexity and distinctiveness of China's economy meant gloomy predictions were pointless, and that they have repeatedly emerged in the past 30 years but never came true.
Yu dismissed concerns over the country's high leverage ratio and property bubble. China's high leverage ratio, which some believe will trigger a crisis or "hard landing", should be interpreted with other detailed factors taken into account.
China's high saving rate is positive factor for the economy. "The higher the saving rate, the less likely it is that a high debt to GDP ratio will trigger a financial crisis", Yu says.