China's corporate debt build-up could trigger crisis: IMF official

Tokyo

THE problem of corporate indebtedness in China has become a "key fault line" for the world's second-largest economy as it seeks structural rebalancing and to achieve sustainable development for the future, a senior International Monetary Fund (IMF) official has warned.

Corporate debt in China has reached "about 145 per cent of GDP (gross domestic product), which is very high by any measure" and it could lead to systemic financial problems and a possible banking crisis, IMF first deputy managing director David Lipton said in Shenzhen at the weekend.