Did you know? There is a debt bomb ticking in China

By Bloomberg

China’s $25 trillion pile of public and private debt is a threat to the global economy. Or maybe it’s just a manageable by-product of the boom that created the world’s second-biggest economy. Weaning the nation off that debt without intensifying an economic slowdown is tricky.

Because China is a key driver of global growth, the solution is everybody’s concern. Cleaning up the nation’s banks is one approach. Propping up borrowers to prevent defaults is another.

China’s borrowings soared to about 247% of GDP in 2015 from 164% in 2008. Governments have borrowed $4 trillion. The problem could be bigger because of the frantic rate of new lending, it’s hard to know how many loans aren’t being repaid.