- Chinese debt, particularly its corporate debt, has been rising explosively and now stands at unprecedented levels according to basically any metric.
- The magnitude is such that many expect some kind of crash.
- While that can’t be excluded, particularities of the Chinese financial system provide some safeguards against that happening.
- What is more likely is that credit and economic growth will decrease and banks and companies will be burdened by debt for a long time, like Japan.
When Will China’s Debt Problem Detonate?
December 26th, 2016 · No Comments