CHINA DRAGGING DOWN THE GLOBAL ECONOMY
It is true that China has slowed from its previous double-digit growth, but as the Chinese economy transitions to what some have dubbed the "new normal," China remains the world's major growth engine.
If China's GDP grows 6.7 percent in 2016, in line with the official target, it would account for 1.2 percentage points, or 39 percent, of world GDP growth, according to economist Stephen Roach.
Fraught with growing economic uncertainty and geopolitical instability, the world needs a stable Chinese economy more than ever.
China's ongoing transition from an export and investment-driven growth economy to one based on consumption, services and innovation, will be of huge benefit to the world, without a doubt.
LOCAL GOVERNMENT DEBT BOMB
China's local government debt woes have been depicted by the Economist as a "bomb" that needs to be defused.
Local governments had issued 1.13 trillion yuan (162 billion U.S. dollars) of bonds by the end of September this year, using 96.2 percent of the annual quota of new issuance, with the debt rate expected to stay flat with last year.
A debt level of about 90 percent is relatively low when compared with other major or emerging economies, and authorities have reacted promptly with debt swap programs and deleveraging measures.
The caps and tightened supervision imposed by the finance ministry in November will help curb debt, and contingency plans have been introduced to allow for fiscal rebalancing.
China's debt calculation is open and transparent and the risks remain controllable, Vice Finance Minister Zhu Guangyao said in October.
A BURST HOUSING BUBBLE
A number of market analysts expected a crash to hit China's housing market, predicted to have a disastrous impact on the economy.
However, policymakers have always been alert to the risks in the market, and have introduced measures to cool an overheated property market and keep asset bubbles at bay.
Latest figures show the market is stabilizing, with total floor space of sold apartments in major Chinese cities in November experiencing the first year-on-year decline in 21 months.
The recently concluded Central Economic Work Conference reaffirmed that houses are to be built for living in, not for speculation, vowing to adopt financial, fiscal, tax, land and regulation measures to build a long-term system that provides housing for all people.
