In light of the rising domestic debt level, particularly the corporate debt, ANBOUND's research team believes that in the shot-middle term, in order to develop the capital market, it might be necessary to provide liquidity to the enterprises through equity financing.

The blind pursuit of economic growth in the past few years have led to a substantial increase in China’s overall leverage ratio and many countries have experienced financial crisis or long-term stagnation in economic development following such drastic growth in the debt.

High saving rate has saved China from troubles for now, however, as its population ages, the saving rate is bound to decrease.

In the long run, the only way to truly reduce China’s overall debt level is through reform.