国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Opinion / Op-Ed Contributors

Sooner the debt to equity shift the better

By Andrew Sheng and Xiao Geng (China Daily) Updated: 2016-06-14 07:47

Sooner the debt to equity shift the better

A clerk counts yuan bills at a bank in Huaibei, East China's Anhui province. [Photo/IC]

A spate of recent commentary has been warning of the vertiginous rise in China's debt, which jumped from 148 percent of GDP in 2007 to 249 percent at the end of the third quarter of 2015. Many are anxiously pointing out that China's debt is now comparable to that of the European Union (270 percent of GDP) and the United States (248 percent of GDP). Are they right to worry?

To some extent, they are. But while observers' concerns are not entirely baseless, it is far too early to sound the systemic-risk alarm. For starters, China has a very high savings rate-above 45 percent over the last decade, much higher than in the advanced economies-which enables it to sustain higher debt levels.

Moreover, China's banking system remains the primary channel for the deployment of the household sector's savings, meaning that those savings fund corporate investment through bank lending, rather than equity financing (which accounts for only about 5 percent of net investment). Indeed, the sharp acceleration in the debt-to-GDP ratio is partly attributable to the relative underdevelopment of China's capital market.

Once these factors are taken into account, China's overall debt levels do not seem abnormally high. While debt might be a problem for Chinese companies with excess capacity and low productivity, companies in fast-growing, productive sectors and regions may not be in too much trouble. More generally, China has made recent progress in boosting labor productivity, encouraging technological innovation, and improving service quality in key urban areas, despite severe financial repression and inadequate access to funding by small and medium-sized private enterprises.

Previous Page 1 2 Next Page

...
永寿县| 紫阳县| 通渭县| 斗六市| 墨玉县| 龙陵县| 九龙县| 濮阳县| 海安县| 嘉义县| 绥阳县| 宜章县| 凤阳县| 扎兰屯市| 建德市| 汪清县| 宽甸| 芦山县| 武夷山市| 洪泽县| 稻城县| 兴化市| 隆德县| 汤阴县| 广丰县| 久治县| 武义县| 陵水| 金川县| 宿迁市| 南江县| 万全县| 密云县| 花垣县| 普洱| 万年县| 江川县| 霍邱县| 巴中市| 阜城县| 普陀区|