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China needs bond market reforms to rein in soaring debt, S&P Global says - TL;DR CNBC

China needs bond market reforms to rein in soaring debt, S&P Global says

Publishing timestamp: 2024-06-14 02:52:12


Summary

S&P Global warns that China's soaring debt poses significant long-term risk to the country, despite government efforts to control leverage. Bond market reforms may be necessary to tackle challenges and lower debt levels. China's extraordinary credit expansion, heavy infrastructure spending, and falling profitability are fueling the debt problems. The government plans to issue special treasury bonds and improve mechanisms to prevent and control risks. Efficient credit allocation and corporate bond reforms are key to reining in debt while sustaining growth.


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Keywords: s&p global incchinaworld marketseconomic eventsbusiness newsasia economy

Source: https://www.cnbc.com/2024/06/14/china-needs-bond-market-reforms-to-rein-in-soaring-debt-sp-global-says.html


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