Whither the yuan? China’s currency is currently going through a weak patch. This is because of worries over China’s economy – largely down to massive debt held by local governments in China and an inscrutable shadow banking sector tangled up in a now-slowing real estate boom. By most economists’ reckoning, China’s total debt has nearly quadrupled since 2007, rising to approximately USD 28 trillion (EUR 24.9 trillion) by mid-2014. That means at 282 percent percent of GDP, China’s debt is bigger than that of the United States on a percentage-of-GDP basis.
February 27, 2015
Themes in China to follow in Year of the Lamb (or Goat)
