China delivered growth right in line with estimates at 6.7 percent for the third quarter, suggesting that the government's fiscal stimulus continues to support the world's second-largest economy.
But the growth also heightens worries around the government's spending habits and raises questions as to how long officials can continue to allocate large sums of capital into the economy to sustain these growth rates.
The International Monetary Fund recently warned that China's debt problem is becoming unsustainable and should be addressed sooner rather than later by Beijing. China's debt to GDP ratio is at 250 percent.
"Growing levels of Chinese debt are one of the biggest risks to our mostly positive outlook," said Sameer Samana, global quantitative strategist at the Wells Fargo Investment Institute. "The most recent numbers on aggregate financing and new yuan loans were 24 percent and 22 percent above consensus estimates, which shows that policymakers are still choosing debt-fueled growth over reforms and that is unsustainable because it creates a lot of excess capacity and inefficient growth,"
Influential hedge fund managers also have been voicing their concern around China's debt problem. Hayman Capital's Kyle Bass told CNBC's "Power Lunch" that he wasn't confident in China's growth story specifically when it pertained to the country's banking system.