Bloomberg / ASR: China’s $7 Trillion ‘Hidden Debt’ Is Back in Focus
12th JAN. 2023
With Beijing pivoting on key policies, a cyclical recovery appears to be underway. But structural issues – such as the heavy debt load of local governments — haven’t gone away.
Bloomberg’s Ye Xie cited ASR’s Adam Wolfe, whose November report gave context:
“ The hidden debts and contingent liabilities (of local governments) have risen to 47 trillion yuan ($7 trillion and 39% of GDP) in September, up from 20 trillion yuan at the end of 2016”.
This hidden debt remains what’s known as a “grey rhino” - a high-risk threat that is often ignored until it’s too late. Bloomberg notes Adam Wolfe’s concern that Guizhou’s debt restructuring is just “a
tip of the iceberg.”
To read the full story on your Bloomberg terminal, see HERE
ASR Clients can read the full report, Hunting grey rhinos in China’s provinces, from Adam Wolfe HERE
To request a copy as part of free trial access, kindly reply HERE