China's debt issue has always been one of the main reasons why the market has negative perception towards China’s economy. ANBOUND research team noted that both the Chinese government and enterprise debts have been sharply increased in recent years and debt risks are accumulating. However, the Chinese government and private sectors have massive assets which theoretically sufficient to cover debt risks, therefore debt issues will not trigger systemic risks in the short run. Having said that, China still needs to control its debts prudently.