The report discusses the critical debt situation in the materials and industrials sectors, highlighting the rising balance sheet leverage since 2008 despite falling capital expenditure relative to sales. It points out the overcapacity driven by cost subsidies to non-listed enterprises and the increasing leverage in the economy, particularly by local government financing vehicles. The report estimates LGFV debt to be significantly higher than the last official estimate in 2010.
doj/DataSet10/EFTA01451006.pdf
{"title":"GEM Equity Strategy Outlook 2014","document_date":"December 2013","document_type":"other","key_locations":["China"],"document_subtype":"financial report","key_organizations":["Deutsche Bank","Bloomberg Finance LP","National Audit Office"],"reference_numbers":["DB-SDNY-0107098","SDNY_GM_00253282","EFTA01451006"]}