China debt: highly-leveraged state firms could threaten ‘efficient growth’, private investment post-pandemic

Surging debt among Chinese state-owned enterprises (SOEs) with close ties to local governments could become a major hurdle for private sector investment and broader economic growth, analysts say.While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists.China’s deleveraging campaign of recent years,…

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