China's debt is growing faster than its economy

While China’s economy expanded at a faster-than-expected pace in the year to June there was something that accelerated even quicker – private sector debt. According to Bloomberg, outstanding loans for companies and households stood at a record 207% of gross domestic product (GDP) at the end of June, nearly double the 125% level seen in 2008. Having delivered four rate cuts, three reserve ratio requirement reductions and implementing debt swap facilities to reduce financing costs for local g...