A woman works at a garment factory in Huaibei in central China's Anhui province Wednesday, July 15, 2015. (Chinatopix via AP)
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Corporate China's debts, at 160 percent of GDP, are twice that of the United States, having sharply deteriorated in the past five years, a Thomson Reuters study of over 1,400 companies shows.And the debt mountain is set to climb 77 percent to $28.8 trillion over the next five years, credit rating agency Standard & Poor's estimates.China's banks made 1.28 trillion yuan ($206 billion) in new loans in June, which was well up on May's 900.8 billion yuan.The Thomson Reuters study found that in 2010, materials companies' debts were 2.8 times their core profit.S&P expects China's companies to account for 40 percent of the world's new corporate lending in the period through 2019 .Getting credit to the most efficient companies, where it has the most impact on the economy, would be easier if inefficient companies were allowed to fail, so markets can price debt effectively.
FOLLOW THIS ARTICLE