You are here

China saddled with an unwieldy debt load

The authorities are concerned about the intensifying risk of corporate defaults, particularly in the unregulated "shadow finance" sector

The abundance of cheap cash meant, for instance, the cost of garlic jumped 80 per cent last year on speculation.


CHINESE banks lent more money in January alone than the annual GDP of South Africa, as borrowers rushed to take advantage of government policies intended to stimulate the economy with easy credit.

But the free-for-all has had unintended consequences, creating a tottering...

Market voices on: