China’s debt-to-GDP ratio has been steadily rising since the Global Financial Crisis. In fact, according to Man GLG’s Head of Asia (ex-Japan) Equities Andrew Swan, it’s very high compared to many other emerging markets (and higher than many developed ones, too). 

Without change, China could now face a “debt deflation trap” – similar to what Japan experienced amid its “lost decade” during the ’90s – a multi-decade economic decline where the incentive for consumption and investment declines with it. 

Read and watch Andrew Swan on Livewire’s Expert Insights

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