Nisha Gopalan & Andy Mukherjee, Columnists

Xi's Deleveraging Dream Is a China Myth

Investors remain sanguine in the absence of evidence that progress has been made.
Photographer: Krisztian Bocsi/Bloomberg
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So what if there's a lot of China debt out there, and the pile just keeps getting bigger? Investors, at least, appear not to care.

As President Xi Jinping prepares for a second five-year term, he's already managed to convince markets that China's deleveraging train has left the station -- never mind that there's no evidence state-owned enterprises have even begun to shed assets or debt, more than a yearBloomberg Terminal after the government rolled out steps to rein in borrowing.