'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.