Record China Debt Means Growth-Rally Mismatch: Chart of the Day
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Concern is growing that China’s world-beating stock surge is out of kilter with the country’s economic slowdown and record debt binge.
The CHART OF THE DAY shows China’s total public and private debt has increased to more than twice the nation’s economic output, soaring 83 percentage points relative to gross domestic product since 2007. No other developing country has amassed as much debt as quickly, according to data compiled by McKinsey Global Institute. While the economy is growing at the slowest pace since 1990, the Shanghai Composite Index has jumped 64 percent in the past year, the best performance among major equity gauges tracked by Bloomberg.