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Bloomberg / ASR: China’s $7 Trillion ‘Hidden Debt’ Is Back in Focus

Beth McCann

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 

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