China fault lines: Where economic turbulence could emerge in 2016

Beijing

CHINA'S leaders are striving to cut leverage while restructuring growth away from an over-reliance on investment and towards greater consumption and services.

Sounds simple. But there's a risk the transition triggers a steeper slide in growth in 2016. Things could also go awry if there's an acceleration of capital outflows, corporate defaults that trigger more bank bad loans, or increased turbulence in the shadow banking industry, according to economists and analysts interviewed by Bloomberg.