Site icon China Economic Review

China to become largest corporate debt market

China is projected to surpass the US as the world’s largest market for corporate debt, Financial Times reported, citing a Standard & Poor’s note. China is projected to have US$13.8 trillion in debt by the end of 2014, overtaking the US’s current debt holdings of US$13.7 billion. The rating agency reported that China’s corporations will have debt needs of more than US$18 trillion (RMB110 trillion) by the end of 2017. S&P said the majority of corporations taking on debt in China are state owned enterprises, which have low debt risks. The volume of corporate debt issuance is typically seen as a barometer of economic growth.

Exit mobile version