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China debt

China debt
The latest news and features on China's debt, both local and national.
IMF Managing Director Kristalina Georgieva speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, DC, the United States, on April 24. Photo: Xinhua
China GDP

IMF raises China growth forecast to 5% for 2025, citing resilience

The assessment is up from October’s forecast, with the fund citing government stimulus and lower tariffs as drivers.

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China GDP

China’s economic focus in 2026: what to expect as leaders prep for major meeting

Banking & finance

China’s risky shadow banks back in spotlight after debt crackdown

Banking & finance

China’s finance chief calls for fiscal firepower as Beijing weighs 2026 goals

This month’s central economic work conference will set the tone, while top finance official signals more assertive fiscal support.

Lan Foan, China’s finance minister, attends a new conference on the economy for the third session of the 14th National People’s Congress on March 6. Photo: VCG via Getty Images
Bonds

Weak growth outlook fuels China’s bond market recovery, analysts say

Concerns about inflated valuations of technology stocks are also driving investors towards bonds.

China economy

Opinion | An obscure new department heralds a shift in China’s debt cycle

In addition to regulating local government debt, the department will guide the nation away from a cycle driven by land as collateral.

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China's economic recovery

China tightens tax scrutiny on citizens’ overseas income amid fiscal pressures

As local authorities use big data to identify violators, analyst says better enforcement could ease financial strain.

Facing fiscal challenges in recent years, China’s local authorities have expanded initiatives to collect taxes. Photo: Getty Images
China's economic recovery

Tax reform in China’s 5-year plan aims to protect budgets without crushing firms

Officials propose boosting direct and local levies, curbing tax breaks and tapping new sectors to shore up local revenues and fund social spending.

Banking & finance

China sets up new department to spearhead government debt clean-up drive

The move comes as Beijing steps up efforts to clear up masses of ‘hidden debt’ accumulated by local governments.

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China's economic recovery

‘Unforgivable’: Chinese county still living in shadow of wild spending binge

In the 2010s, Dushan splashed billions on high-rises and a fake Big Ben. Today, the buildings are mostly empty – but the debts remain.

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Illustration: Henry Wong
Ray Dalio

In China, Ray Dalio discusses global debt issues as Beijing seeks his counsel

With local-level debt still posing risks in China, while US borrowing accelerates, Beijing turns to the Wall Street veteran for guidance while navigating precarious financial waters.

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Billionaire global macro investor Ray Dalio, seen here in May 2024, spoke this week with top Chinese officials in Beijing. Photo: Reuters
China stock market

Chinese bond rout continues as global holdings dip to lowest level in 5 years

Flight to equities increases pressure on China’s debt market as holdings by foreign institutions fall for a third straight month.

China economy

As China defuses its time bomb of debt, US hears the ticking intensify

Why do analysts see America’s debt situation as ‘more concerning’, and why is China’s situation a ‘big advantage’?

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China's economic recovery

‘Progress’: China’s campaign to ease local government debt scores first big win

Local authorities turned to heavy borrowing after the 2008 financial crisis, forcing Beijing to take action.

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Residential buildings under construction in the Kangbashi district of the town of Ordos, south of the city of Dongsheng in China’s Inner Mongolia autonomous region. Photo: Reuters
China travel

China’s high-speed rail nears 50,000km milestone – but is it sustainable?

The network dwarfs global rivals and has reshaped domestic travel – but analysts warn debt levels cannot be ignored.

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A volunteer holds leaflets as he stands near a 600km/h High Speed Maglev model showcasing at the National Railway Test Center during a tour by delegates to the World Congress on High-Speed Rail held in Beijing, on July 9. Photo: AP
China’s economic stimulus

New committee, bailout talk: is China launching a fresh property rescue effort?

China’s central bank has set up a new ‘financial stability committee’ and pledged to defuse risks in key regions and institutions.

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China consumption

China vows more fiscal support to spur demand and curb local government debt

Beijing will also boost stimulus to support families and further back emerging industries, finance minister says.

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Ray Dalio

Why did a Chinese economist slam Ray Dalio on debt situations in US, China?

Xu Gao’s 9,000-word article, ‘Where Did Dalio Go Wrong on National Debt?’, comes as China’s Politburo is preparing to set policy tone for rest of year.

Bridgewater Associates founder Ray Dalio’s latest book came out last month. Photo: Getty Images
China property

China’s property loans rise to a 2-year high on policy support

China’s outstanding property loans rise to a two-year high in June, thanks to support from policy measures.

Infrastructure

China slams grass-roots mismanagement, shames failed ‘longevity city’ in warning

Disciplinary authorities are on the hunt for wastefulness, putting ‘blind decisions’ in their crosshairs as local-level cadres struggle to stimulate economies.

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China's economic recovery

Explainer | Why China’s fight against cutthroat competition is different this time

Private firms, weaker growth and limited fiscal space will make it difficult for Beijing to rein in ‘neijuan’, analysts say.

A highly competitive market has forced Chinese electric vehicle companies to slash prices on over 100 models, according to People’s Daily. Photo: Reuters/Annegret Hilse
China property

Opinion | Why China can’t make a clean break from reliance on land and property

There is no lack of reform ambition but there will be no clean break: the old system persists because no fully functional alternative exists.

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Illustration: Craig Stephens
China's economic recovery

China pledges to build megaprojects despite pivot to domestic consumption

Beijing will press ahead with major investment projects, even as policymakers look to boost household spending to drive future growth.

Bonds

China urged to issue 30 trillion yuan in bonds to tackle local debt crisis

Such a move would reduce local government debt by replacing it with lower-interest bonds, which could help revive economic activity.

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China's economic recovery

Word is bonds: China’s provinces use special-purpose funds to pay debts

Hunan and Yunnan are using special-purpose bond funds to balance their books, the first provinces to do so as Beijing stresses financial risk control.

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China’s Hunan and Yunnan provinces are using special-purpose bond funding, typically earmarked for infrastructure, to pay businesses owed by local governments. Photo: Xinhua
Belt and Road Initiative

Time for China’s belt and road partners to pony up as debt comes due: think tank

Report by Lowy Institute finds that China has shifted from a net capital provider to developing countries to their biggest debt collector.

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The Lane Xang electric multiple unit (EMU) train passes by the China-Laos borderline inside a tunnel. China is the largest bilateral lender for Laos and six other land neighbours. Photo: Xinhua
China economy

Open Questions | Tech boost is no panacea for fixing China’s economic ills, Morgan Stanley economist says

Robin Xing, Morgan Stanley’s chief China economist, says the revival of animal spirits spurred by DeepSeek must be supported by broader consumption measures and social welfare reforms.

Two Sessions 2025

‘Two sessions’ 2025

China’s Premier Li Qiang set China’s 2025 GDP target at ‘around 5 per cent’ and raised its debt-to-GDP target in his government work report. We compare national and local growth targets, look at spending by sector and the trend in government debt.

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