Things are not looking for for China. It seems like Beijing has averted a crisis as far as their stock markets are concerned with some heavy-handed intervention. But their corporate debt has already reached $ 16.1 trillion and is still rising. Their corporate debt is currently at 160% of their GDP and that is twice as much as the US having deteriorated sharply in the last 5 years. This debt mountain is going to climb an additional 77% to $ 28.8 trillion in the next 5 years. The policy interventions in Beijing which affect corporate credit have been designed for addressing economic growth so far. But this year, it is set to reach a twenty five-year low. Interest rates have already been cut 4 times since November 2014, bank reserves have been reduced and limits have been removed from the amount of deposits which they can lend. Even though […]