Thursday Oct 28 2021
At $27 Trillion, China has a lot of corporate debt.
China has a massive amount of corporate debt. At $27 trillion, it boasts a debt-to-GDP ratio of 159%, almost 60% higher than the global rate and nearly twice that of the US, according to research published this month by S&P Global Ratings.
“China’s growth has been largely driven by two contours: One is credit, and the other is carbon,” says Eunice Tan, one of the report’s lead authors and head of credit research for S&P Global Ratings’ Asia-Pacific region.
Past financial crises are near always the result of too much debt, low interest rates, and then a collapse of the collateral supporting the debt issue. That is exactly what is happening in China now. Indeed this may be China's Lehman mooment.
Professor Elam 
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