State-owned Chinese Firms Borrowing Far More Than Private Firms Despite Lagging Profits

The share of corporate loans to state-owned Chinese firms has increased substantially in recent years compared to loans to private firms, even though profits at state-owned firms lag far behind. The trend reflects the growing role of the financial system in propping up underperforming companies and may drag down future growth for China. The chart shows the share of loans to … http://bit.ly/2FlaW4G

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