China credit tap back on, but comes with risks, analysts warn

Beijing

CREDIT surged in the first quarter, with new loans up more than 25 per cent, as the government looks to shore up growth. It's an old recipe which could lead to a debt crisis and delay reform, analysts say.

Since January, the Chinese government has embarked China on another credit binge, and while it will not take on the same dimension as in 2008-2009, analysts warn the short-term solution to prop up growth is less and less effective.