BofA Merrill Lynch: China's debt crisis is unlikely

Low external debt level is the decisive factor, the renminbi internationalization progress can be "Caixin net" (reporter Wang Jiapeng from Boao) because of China's low external debt level, the likelihood of a similar European debt crisis is very small.　　TJ Bond, Asia Pacific's chief economic analyst for BofA Merrill Lynch, made the judgment during the Boao Forum for Asia. Bond said that the continued influx of hot money on the pretext of trade, coupled with the arbitrage of banks and Chinese companies by high interest rates and the appreciation of the renminbi, has led to a sharp rise in short-term Chinese debt.　　But he stressed that the low level of external debt was the root cause of preventing a similar European debt crisis. In his view, China is likely to follow its own timetable for the "prudent reform" of the renminbi exchange rate regime, and will make important progress in the international use of the renminbi in the near future.