汇丰银行-中国私营企业-China’s private sector revs upIt is structural-20170718-HSBC.pdfVIP

18 July 2017   China’s private sector ECONOMICS CHINA revs up It is structural  Private sector companies have de-leveraged significantly since 2012, in contrast to their SOE counterparts  In response to changing demand conditions, the private sector has also moved up the value chain  These structural adjustments will likely make the ongoing private sector recovery more sustainable In recent years, China commentators have paid much attention to its infrastructure- centric fiscal stimulus and rising debt burden. Both are disproportionally concentrated in the state-owned sector (see China’s dual-track economy, 29 May 2017). However, Julia Wang away from the spot light, China’s private corporate sector, the main growth engine, Economist, Greater China has gone through a major creative destruction process since 2012. De-leveraging The Hongkong and Shanghai Banking Corporation Limited juliarwang@.hk was widespread and significant, with the overall liability-to-asset ratio falling by 6ppt +852 3604 3663 since 2008 and 4ppt since 2012 (to 50.7 in 2016). Less competitive companies have Hongbin Qu gone under, resulting in a prolonged slowdown in private sector business investment Chief Economist, Greater China The Hongkong and Shanghai Banking Corporation Limited until mid-2016. Meanwhile, those that