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Thursday, March 31, 2016
China Might Have Underestimated Corporate Debt Risk
ANBOUND

The global debt risk has becoming increasingly prominent in light of the global economic downturn coupled with global capital excess.

ANBOUND's research team is of the view that the current global debt risk is actually the result of the easing measures introduced by the global central banks following the financial crisis, which had in fact injected massive capital into the market.

This has saved the markets and the enterprises for the short term but it also prolongs the long term risk of the financial market.

In China, it is difficult for the enterprises to alleviate their debt pressure, of all the China’s debts, enterprise’s debt is the most risky and the unprecedented risk of massive debt default by enterprises is on the rise and hence the policy departments and the banks in China should be prepared for this.

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