China hands over G20 stewardship with economy stable, for now

NEW YORK (Oct 10): China has turned from a shaky steward to a stalwart of the Group of 20.

When China assumed the presidency of the G20 in December, its economy was faltering, the yuan was besieged by speculators and its stock market was in the midst of an unprecedented rout. The turmoil roiled markets across the world, helping wipe out more than US$6 trillion ($8.2 trillion) in global equity value in the first two months of 2016.

As central bank governors and finance ministers concluded their gathering in Washington over the weekend, China’s renewed stability contrasted with tepid growth elsewhere and a populist backlash against globalization. Yet the lending expansion that’s underpinned growth has also led to a further buildup in debt and fueled a surge in housing prices in major cities.

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