Goldman builds China financial-stress index and, yes, it's risen

Tokyo

WITH China's leadership focused anew on curbing the economy's leverage, Goldman Sachs Group Inc analysts are rolling out a new gauge of stress in the country's financial markets.

With corporate bond sales being cancelled, stocks sliding and government debt yields climbing in recent months, it's no surprise that the measure shows an increase in strain. But the financial-stress index, or FSI, has dropped from the recent high in late 2016 and early 2017, and might not necessarily translate to weakness in the economy, Goldman analysis showed.