Chinese corporate debt is the ‘biggest threat’ to the global economy, says Moody’s chief economist – CNBC

  • While corporate debt is a “fault line in the financial system and the broader economy,” Moody’s Chief Economist Mark Zandi flagged Chinese indebted companies as the “biggest threat.”
  • A similar warning by Fitch Ratings last week said that private companies in China have defaulted on their debts at a record pace this year.
  • In an October report, the ratings agency put it down to a tightening of credit as a result of the government’s deleveraging efforts.