Economics
Asia Inc.’s Debt Level Is Rising Again, But That’s a Good Thing
- MSCI Asia Pacific debt-to-equity back to pre-crisis level
- Firms investing as trade tensions ease: United First’s Tang
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The financial gearing of Asia Pacific’s largest companies has risen for a second year following a period of deleveraging, but market participants don’t see cause for alarm.
The median total debt-to-total equity for non-financial companies in the MSCI Asia Pacific Index reached about 44% in the first nine months of 2019. That is slightly higher than the 41% seen in 2007, before the global financial crisis. Still, for many analysts, a low interest-rate environment, healthy cash balances and a favorable global economic outlook provide reassurance.