From China's Global Times on Sunday, on the arguments for much lower interest rates in the country.
Amongst the global and local reasons it cites are specific factors:
- mounting debts and the financing problems in the real economy
According to data from the National Institution for Finance and Development, China's enterprise sector's debts account for 155.7 percent of the nominal GDP, up 2.2 percentage points from the end of last year. It's far beyond the government sector's leverage ratio of 38.5 percent and the resident sector's leverage ratio of 55.3 percent.
Here is the link for more.
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The GT is often conduit for official thinking that might not make it into Xinhua or other less confronting official China publications. This piece might very well prove prescient.
