Alan Greenspan’s tonic for China’s debt woes

China’s debt-to-GDP ratio is 125 per cent, which means a crash would be crippling. The former Fed chair thinks contingency convertible bonds could provide a valuable safety net.

China’s growing debt problem weighs heavily on global investors and many are concerned about the stability of the financial system. Alan Greenspan, the longest serving US Federal Reserve Chairman, believes Beijing has enough financial fire power to prevent a total collapse and offers a solution -- contingency convertible bonds (What Alan Greenspan thinks of China’s ills, 29 April).

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