China’s jobless recovery risks debt indigestion – ZAWYA

China’s jobless recovery risks debt indigestion – ZAWYA

china's jobless recovery risks debt indigestion the pandemic has forced beijing to prop up sectors, including exports and tourism, where demand has been hit hard and unemployment rising    a man wearing a mask walks past the headquarters of the people's bank of china, the central bank, in beijing, china, as the country is hit by an outbreak of the new coronavirus, february 3, 2020.(the author is a reuters breakingviews columnist. the opinions expressed are his own.)hong kong  - china has avoided a recession, but debt problems are piling up. output rose 3.2% year-on-year in the three months to june, following last quarter's record contraction. investment still looks tepid, employers are shedding jobs, and retail is anaemic. that means more bad loans. unfortunately, the country is running low on distressed debt investors.the pandemic has forced beijing to prop up sectors, including exports and tourism, where demand has been hit hard and unemployment rising. regulators, who had been working to deleverage the financial system, have been busy pushing banks to extend credit to riskier borrowers and roll over loans. they complied: in the first half of 2020, lenders issued a record $1.7 trillion in fresh loans.hong kong  - china has avoided