• 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?