Markets Magazine
Digging Into China’s Growing Mountain of Debt
Data that breaks the country’s borrowing into its bank, corporate, government, and household components can help you get a more-nuanced picture.
China Debt as a Matter of Concern for Investors
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Some prominent investors are worried about China’s debt. George Soros sees an “eerie resemblance” between conditions in China now and those in the U.S. leading up to the financial crisis in 2008. “It’s similarly fueled by credit growth and an eventually unsustainable extension of credit,” Soros told the Asia Society in New York in April.
BlackRock Chief Executive Officer Laurence Fink was asked about China’s mounting debt on Bloomberg TV in May. “We all have to be worried about it,” Fink said, adding that he remains bullish on China’s economy in the long run.