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The debt crisis of China’s state-owned enterprises (SOEs) has been deepening since 2020. Beijing has recently issued a report to address the issue as several SOEs have defaulted on loans in recent months. The State Council of China recently issued the report “The Guideline on Enhancing Debt Risk Control of Local State-owned Enterprises” on March 28. Beijing requires state-owned firms to create the following: a mechanism to identify and monitor debt; a mechanism to control debt; a mechanism to support the life cycle of a bond; and a long-term mechanism for debt risk management. In the same month when the...

More than three years ago, we explained why "the fate of the world economy is in the hands of China's housing bubble." As we said at the time, "China has always been a serial bubble inflator courtesy of a closed (capital account) economy, and nearly $30 trillion in bank deposits [$40 trillion as of July 2020] which slosh from one asset class to another, be it the stock market, bitcoin, commodities, farm animals or - most often - housing. " Why is it so important for China to consistently reflate this bubble? The answer is simple: for China's middle...

Dandong Port Group, which manages the largest Chinese port trading with North Korea, failed to settle 1 billion yuan worth of bonds that matured at the end of October. The default raised questions over its ability to honour a further 6.95 billion yuan worth of publicly traded bonds and bills, two thirds of which will mature at the end of next year. *** A fixed-income manager who works in China’s interbank market, where much of Dandong’s debt is bought and sold, told the South China Morning Post that the chances of the company repaying the bonds were “not good”, based...

China’s debt surpasses 300 percent of GDP, IIF says, raising doubts over Yellen’s crisis remarks Silvia Amaro Wednesday, 28 Jun 2017 Global debt has hit a record level in the first quarter of this year, mainly driven by emerging markets, raising questions of whether there will be another financial crisis in the near future. Data from the Institute of International Finance showed that global debt reached $217 trillion in the first quarter of this year, or 327 percent of gross domestic product. "The debt burden is not distributed evenly. Some countries/sectors have seen deleveraging while others have built up very...

China’s financial system The coming debt bust It is a question of when, not if, real trouble will hit in China May 7th 2016 | From the print edition Timekeeper CHINA was right to turn on the credit taps to prop up growth after the global financial crisis. It was wrong not to turn them off again. The country’s debt has increased just as quickly over the past two years as in the two years after the 2008 crunch. Its debt-to-GDP ratio has soared from 150% to nearly 260% over a decade, the kind of surge that is usually followed...

Tajikistan's President Emomalii Rahmon paid a state visit to China on May 19-20, where he had talks with his Chinese counterpart, Xi Jinping, and with several heads of Chinese state corporations. Rahmon's official visit resulted in several multi-million-dollar investment projects in the infrastructure, banking, energy and mining sectors, as well as a technical cooperation agreement that altogether added up to around US$200 million, thereby further strengthening China's presence in Tajikistan's economy. During the first day of his visit, President Rahmon met the heads of various Chinese state corporations, which shows the Central Asian leader's particular interest in the further encouragement...

BEIJING - An International Monetary Fund (IMF) chief said on Wednesday that Chinese government debt has risen to nearly 50 percent of the country's gross domestic product (GDP) but is still under control. Speaking at a press briefing after the completion of an annual review of the Chinese economy by the organization, David Lipton, the IMF's first deputy managing director, said, "Reining in total social financing growth is a priority and will require further tightening of prudential oversight as well as, critically, improved investor accountability for their investment decisions." The IMF concluded in its review that it is important to...

A billboard advertising foreign currencies in Shanghai. US Treasury bonds accounted for 36.4 percent of China's $3.31 trillion foreign exchange reserves on Dec 31, according to the People's Bank of China. The State Administration of Foreign Exchange announced last month that a new office called SAFE Co-Financing had been launched to handle trusted loans based on the country's foreign exchange reserves. Jing Wei / For China Daily Economists ponder how to ensure safe returns from foreign reserves A burden or a benefit? That is the question economists were asking over the Spring Festival about China's current high level of US...

Chinese bank calls $1.6 trillion local government debt a timebomb Bridge to nowhere? The Agricultural Bank of China has sounded the alarm about "impulsive" local governments over-investing in the name of urbanization. China's official government news agency Xinhua on Saturday reported that local government debt – estimated at 10 trillion yuan or roughly $1.6 trillion – "has long been considered a time bomb for [the] Chinese economy". The bank – one of the four big banks operating in the country with more than 320 million customers – said while growth has slowed along the coastal regions – with the exception...

<p>We have Republican Rep. Michele Bachmann of Minnesota to thank for that bon mot—a play on the name of outgoing Chinese President Hu Jintao—about the country's massive holdings of U.S. Treasury debt. But, while America's dependence on the largess of foreigners is greater than ever, China's role is quietly receding.</p>

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