Sino-File

Levered to the hilt?

“Before the [post-2007] crisis there was one area where debt was very low and stable, and that was China. When there was a crisis in the West, China could lever up. Now that is not the case”

Buttiglione_Luigi

Luigi Buttiglione of hedge fund Brevan Howard on China’s debt levels, which have quadrupled since 2007 to the equivalent of 282% of GDP. This figure emerged from a recent McKinsey study, and means the Chinese debt to GDP ratio now exceeds that of the US. But McKinsey adds that if financial sector debts are removed, the Chinese ratio remains lower than America’s.


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