Analysts at NAB remained concerned about the buildup of excessive leverage in Chinas opaque financial system.
In particular, they said a troubling debt buildup at the local government level leaves China particularly exposed to any property downturn.
NAB said the issue has been lingering since 2013, after local governments used debt to carry out an infrastructure push at the directive of Beijing in the wake of 2009s global financial crisis.
This saw total outstanding debt reach 24 trillion renminbi at the end of 2014 (around $US3.8 trillion) compared with just 4.5 trillion renminbi prior to the crisis.
However, there remains significant uncertainty around local government debt, as data for the overall figure …
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