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Wednesday, May 16, 2018
'Star Provinces' in China Should Beware of Debt Risk
ANBOUND

Using debt ratio (debt balance/GDP) to measure the debt risk of cities in China, Anbound's statistical analysis reveals that that the debt ratios of many cities in Guizhou Province are very alarming. With 60% as the warning line, out of the top 20 cities in China's debt ratio, 9 cities in Guizhou (up to 78.2% in Tongren) are in the list. Of the 7 cities where the debt ratio exceeds the warning line, Guizhou accounted for 5.As a star province in Chinese economic development in recent years, Guizhou's GDP growth rate ranks the top three for the seventh consecutive year in China, in addition of double-digit growth. However, from the perspective of the debt ratio of each city, the high growth rate in Guizhou depends on high debt; the risks brought by such condition cannot be ignored.

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