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Fears of Liquidity Trap May Worsen China's Debt Problem

China's policymakers are struggling to avoid a liquidity trap, but their efforts might accentuate the massive problem of bad debt, which is believed to exceed half-a-trillion dollars, analyst said. "This is a critical time for China.  The central bank has denied there is a liquidity trap problem.  But recent data indicate private companies are hoarding cash and not investing," Max Zenglein, research associate at the Berlin based Mercator Institute of China...


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