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Chen Gong: Vanity Projects and Government Waste are The RealRisk Exposures

Although the ratio of government debt to GDP is not too high,the overall scale of China"s government debts is rather huge. ANBOUND’s chief researcher Chen Gong thinks that debt issues that purely caused by vanity projects require criticism and introspection. Those debts are usually vicious debts that involved investment without much capital value. In addition, government waste is causing another form of debt. These two factors are causing real debts and are risk exposures that need to be solved by financial institutions.

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