Relevant:
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- China Approves Another 1 Trillion Yuan Local Debt Swap
- Bank of America Pulls Ripcord on Chinese Conglomerate HNA (SIGN OF PEAK?)
- China's "Subprime" Crisis Is Here
- Americans now Hold Over $4.1 Trillion in Consumer Debt: Last Debt Bubble Peak was at $2.5 Trillion.
2017-08-19 — wolfstreet.com
[According to analyst Charlene Chu], by the end of 2017, bad debt in China could hit 51 trillion yuan, or $7.6 trillion. Or about 68% of GDP! It would take the bad-debt ratio to an astronomical 34% of all loans, and way above the 5.3% that the authorities are proffering. And the authorities -- the government, the central bank, supported by the state-owned banks -- are now pulling all levers to keep this under control.
"What I've gotten a greater appreciation for is how everything is so orchestrated by the authorities," she said. "The upside is that it creates stability. The downside is that it can create a problem of proportions that people would think is never possible. We're moving into that territory."
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