THE AUSTRALIAN
China’s ‘unsustainable’ debt
Pedestrians walk past the Standard & Poor's Financial Services. Picture: Bloomberg
The Australian
12:00AM October 12, 2016
Daniel Palmer
Business journalist
@Danielbpalmer
economy: Ratings agency Standard & Poor’s has delivered a stern warning on China’s growing debt pile, declaring the rate of growth in corporate debt unsustainable.
Should relentless corporate debt growth continue, the ratio of problem credit to total credit for China’s banks could swell to an alarming 17 per cent, a level that would force institutions to raise as much as $US1.7 trillion ($2.25 trillion) in fresh capital.
“Our base-case expectation is that the momentum of corporate debt growth, in particular, will persist for another two years,” said Terry Chan, a credit analyst at S&P Global Ratings.
READ MORE: http://www.theaustralian.com.au/business/chinas-unsustainable-debt/news-story/2b2568752bf33141e1ec6b0d2ee50c6c
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