July’s publication summarizes two articles about the complex dynamics in China’s slowing economy. The first considers how high debt levels, industrial overcapacity, and the new government’s policy stance have increased the risk of a sharp economic slowdown. The second discusses how new Chinese banking regulations will restore investor confidence and allow growth to remain high, while also noting that the risk of a crisis has been overstated by other observers.

• “Risks Rising of a Temporary Hard Landing” Jian Chang, Barclays, July 5, 2013
• “Bank WMPs, Tunneling, and Shadow Banking” Ting Lu and Xiaojia Zhi, BofA Merrill Lynch, April 8, 2013