Summary of Resolving China’s Corporate Debt Problem

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Resolving China’s Corporate Debt Problem summary
Start getting smarter:
or see our plans

Rating

8 Overall

9 Importance

8 Innovation

7 Style

Recommendation

Intended to fuel domestic investment in the aftermath of the 2008 financial crisis, China’s corporate credit boom has instead led firms to lackluster performance and poor-quality investments. According to this incisive report from IMF experts, China’s policy makers and bankers must execute a disciplined growth strategy that, in the longer term, will benefit the Chinese economy. That includes creating frameworks for deciding which troubled companies to rescue and which to abandon, along with overhauling capital markets to promote more efficient investment. getAbstract recommends this rigorous analysis to economists, policy makers, financial executives and China watchers.

In this summary, you will learn

  • Why the Chinese economy relies on corporate credit,
  • What has led to investment inefficiencies and poor profit performance, and
  • What fixes could restore healthy economic growth in China.
 

About the Authors

Wojciech Maliszewski et al. are economists and analysts at the International Monetary Fund.

 

Summary

The global recession that followed the 2008 financial crisis reduced China’s external trade. GDP growth since then has rested significantly on internal demand, driven by corporate credit that expanded at a rate of 20% annually, on average, from 2009 to 2015. The continuation of this trajectory has become...

Get the key points from this report in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

By the same authors

Customers who read this summary also read

More by category