Monday, September 23, 2013
Societe Generale Warns on Overly High Solvency Ratio
ANBOUND
Following Fitch's warning on China credit bubble, Societe Generale’s economist Mr. Yao Wei released a report and highlighted that China enterprises’ current principal loan and interest is totaling 38.6% of GDP, an alarming high level. China’s financial system is currently heading toward liberalization, this means that the approach of "100% government guarantee" on debt will be changed align with the financial reform.