The People’s Bank of China reports that the combined domestic debt of corporations, households and the public sector increased last year to a level equivalent to 280 % of GDP (285 trillion yuan or 36 trillion euros), up from 255 % of GDP in 2019. When China’s foreign debt (which the PBoC estimates to be 14.5 % of GDP at the end of June) is included, total debt rises to about 295 % of GDP.
Due to the covid crisis and related measures, the debt-to-GDP ratios of many countries increased significantly last year. Figures from the Bank of International Settlements (BIS) for over 40 countries suggest China’s the increase in debt-to-GDP ratio from the start of 2020 to end of June was quite ordinary compared to the other countries. China’s debt-to-GDP ratio, nevertheless, is distinctly higher than in other emerging economies and on par with US and euro area, which have more developed financial markets.
China’s piling on of debt has long raised concerns among observers of the Chinese economy because rapid descents into indebtedness in other countries have typically led to major economic collapse or severe banking crises. Moreover, China was already engaged in efforts to bail out small and medium-sized banks before covid-19 struck, with so at least 500 billion yuan (BOFIT Weekly 40/2020) in public funds already expended. The lion’s share of Chinese debt exists in the form of bank loans taken by the corporate sector. During the covid pandemic, certain branches experienced significant declines in the ability of firms to service their debts. Stress tests released by PBoC in November showed that 10 of 30 banks were would fail even under the mildest stress scenario, which only assumed that GDP growth would be 1.6 % in 2020 and 7.8 % in 2021. The stress tests comprised all of China’s systemically critical banks.
unemploy in China ? China is a country of self employ hawkers and unofficial economy...........Chinese don't just give up like americans when unemployed.............Chinese will find a way to make money to survive by being self employed, not like americans who just become homeless.
China young graduates got plenty of good options. If they find things tough in Shanghai, they can always go back to their kampongs..... the kampongs and small cities are doing very well because the government has set up very good infrastructures for them in the form of e commerce, tourism, advanced agricultures , small factories and poverty eradication programs.
a malaysian, a malaysian chinese also brainwashed to hate China..........its no surprise that China is so misunderstood in America where all the hate China propaganda originated.
Look at the quality of America politicians and the quality of China politicians and administrators....no compare and China has thousands of years of experience producing Confucian mandarins....the party human resource department plans and decide the careers of its 100 million party members.
Under Xi white elephant project people living like 3rd world country. People fed up with Xi administration.
After signing IPEF global supply chian restructuring those to US dropped 50% caused jobless. Sleep inside concrete Culvert, will people feel happy with Xi administration ?
risk of property prices in America crashing far higher than in China..................says HSBC who has put up for sale their whole property loan portfolio.
Coming collapse of China articles and YouTube's a dime a dozen but China is still red and China will be red for a long long time
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by IDQWE001 > 2023-04-05 15:08 | Report Abuse
The People’s Bank of China reports that the combined domestic debt of corporations, households and the public sector increased last year to a level equivalent to 280 % of GDP (285 trillion yuan or 36 trillion euros), up from 255 % of GDP in 2019. When China’s foreign debt (which the PBoC estimates to be 14.5 % of GDP at the end of June) is included, total debt rises to about 295 % of GDP. Due to the covid crisis and related measures, the debt-to-GDP ratios of many countries increased significantly last year. Figures from the Bank of International Settlements (BIS) for over 40 countries suggest China’s the increase in debt-to-GDP ratio from the start of 2020 to end of June was quite ordinary compared to the other countries. China’s debt-to-GDP ratio, nevertheless, is distinctly higher than in other emerging economies and on par with US and euro area, which have more developed financial markets. China’s piling on of debt has long raised concerns among observers of the Chinese economy because rapid descents into indebtedness in other countries have typically led to major economic collapse or severe banking crises. Moreover, China was already engaged in efforts to bail out small and medium-sized banks before covid-19 struck, with so at least 500 billion yuan (BOFIT Weekly 40/2020) in public funds already expended. The lion’s share of Chinese debt exists in the form of bank loans taken by the corporate sector. During the covid pandemic, certain branches experienced significant declines in the ability of firms to service their debts. Stress tests released by PBoC in November showed that 10 of 30 banks were would fail even under the mildest stress scenario, which only assumed that GDP growth would be 1.6 % in 2020 and 7.8 % in 2021. The stress tests comprised all of China’s systemically critical banks.