China’s total debt burden rose strongly in the first quarter of 2019 as Beijing allowed for more loans and local government bond issuance to help shore up the slowing economy, according to estimates by the Institute of International Finance, reported the South China Morning Post.
The figure stood at nearly 304% of its gross domestic product (GDP) in the first three months of the year, up from 297% a year earlier, the US-based trade association said.
The Chinese government has sought to rein in corporate debt by restricting borrowing through informal channels, known as shadow banking. While the restrictions have prompted a reduction in corporate debt in non-financial sectors, net borrowing in other sectors has surged, bringing total debt to over $40 trillion – some 15% of overall global debt, according to data released by the Institute of International Finance.
You must log in to post a comment.