As mentioned earlier in the week here, the IMF estimates that China’s “hidden debt” to be above ¥60 trillion as of last year. But Chinese officials are now out saying that they only have ¥14.3 trillion in “hidden debt” as of the same period. It’s a stark contrast in terms of the number as the former would suggest a much bigger risk, considering it totals to roughly half of the country’s GDP. According to China’s claims, it is just a little over 10% instead.
Once again, it is China and we won’t get any real specifics or details as to how the numbers came about. But in any case, it is a pertinent issue that is seeing China take action already as announced just moments ago. However, there hasn’t been any other extra stimulus measures announced yet besides this one and that is not looking too pretty for Chinese assets at the moment.