(Adds direct quote from Taylor in the second paragraph.)
Feb. 1 (Bloomberg) -- China’s government won’t allow the nation’s banks to trigger another credit crisis, said Joseph Taylor, an emerging-markets strategist at Boston-based Loomis, Sayles & Co., which oversees $163 billion in assets.
“The credit expansion can continue to the same degree because of the increasing leverage in the system,” Taylor said at the Bloomberg Link China Conference in New York today.
Still, economic growth will slow systemically because China has had “almost no success” in increasing consumption as a percentage of gross domestic product, and the nation has too many non-performing assets, he said.
--Editors: Emma O’Brien, Joshua Fellman
To contact the reporter on this story: Ye Xie in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Emma O’Brien at email@example.com