Date
18 October 2017

China corporate debt at record US$12 trn, Reuters says

China’s total corporate debt hit a record US$12 trillion at the end of last year, translating to about 120 percent of its gross domestic product for 2013, Reuters reported Wednesday, citing Standard and Poor’s estimates. The debt levels are likely to accelerate a wave of domestic restructuring and trigger more defaults, as credit repayment problems rise, the report said. The corporate troubles have been compounded by the questionable use of 4 trillion yuan (US$653 billion) in stimulus that Beijing pumped into the economy at the start of the global financial crisis in 2008, Standard and Poor’s Christopher Lee was quoted as saying.

– Contact HKEJ at digest@ejinsight.com

MY/AC/SK

 

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