China’s state enterprises cut debt, while private groups lever up

Financial Times, Jun 7, 2018
by Gabriel Wildau and Yizhen Jia

China’s privately owned companies are adding leverage, despite Beijing’s broader efforts to cut corporate debt, a sign of how different groups face contrasting fortunes in the country’s heavily state-influenced economy.

At the government’s five-yearly National Financial Work Conference last July, President Xi Jinping said that cutting debt at state-owned enterprises was of the “ utmost importance”. The International Monetary Fund has called the rapid rise in Chinese debt “ dangerous”. 

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