High levels of debt at Chinese companies are making the country’s central bank chief uneasy.

China flag cc

It’s certainly not the only thing keeping the Bank of China chief awake at night. There are many challenges staring the Chinese economy square in the face right now.

(From CNN)

With the Chinese economy slowing down but lending continuing to increase, concerns are rising about the ability of companies to manage their debts, especially in beleaguered industries like steel and other commodities.

The credit rating agency Moody’s warned earlier this month that “high and rising” indebtedness of Chinese state-owned enterprises could result in “a sharp slowdown in economic growth” or inflict damage on banks’ balance sheets.

Click here for the article.