We’ll see


Liang Hong, chief economist of the investment bank, wrote in the report that China’s high leverage ratio was backed by high savings and “it does not mean there’s any credit crisis or liquidity risks”. For instance, while Chinese firms are accumulating debts, they are also sitting on big piles of money as “the amount of cash at the disposal of Chinese companies can cover about 40 per cent of corporate debts”, Liang said in the report.

This Kroll report outlines a lot of the moving variables in one sector growing at breakneck speed. Gonna be interesting.

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