[revealer]

Should investors be concerned about China's Corporate Debts?

Simply put, yes, because China has a very large amount of corporate debt. In fact, China's corporates contribute almost a third (31%) of global corporate debt (see chart 1). In contrast, the country only contributes a fifth of global GDP (see chart 2). Consequently, China's corporate debt to GDP leverage ratio of 159% (June 2021) is one of the world's highest (see chart 3). The growth rate of debt remained high even in early 2021 (see chart 4), even as China recovered from the
worst of COVID.



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