China’s high-speed debt train picks up pace

Of the many risks that threaten to derail the world’s second largest economy, burgeoning local government debt has the potential to inflict the most pain.

For the past few days, I have been travelling in China, working my way from the mega metropolis of Shanghai to regional cities like Guilin. I have been impressed by the country’s new airports and high-speed railway lines. At the same time, the empty buildings that I glimpsed from the window as we zoomed through the countryside made me wonder who is paying for all this.

Chinese local government debt, a cooling property market and excess industrial capacity are the three biggest risks facing the world’s second largest economy.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles