As China's economy is facing increased downward pressure, it is harder for the enterprises to make profit and the situation of debt-ridden enterprises is getting worse.

Anbound’s research team is of the view that as China’s economy continues to slow down and the real economy in particular is not looking good, it is generally believed that the situation of the debt-ridden enterprises will get worse and the risk issue is getting more explicit.

Against the backdrop of the continued downward economy and the worsen market credit environment, it is possible that such risk might affect the financial system, and given that the debt chains are interrelated, a risk incident in an enterprise could trigger more risk and it might cause regional systemic financial risk.