S&P: China’s corporate debt surpasses US

Future financial stress could stem from Asia, as China and its neighbours emerge as the largest group of corporate borrowers in the world, according to S&P. Research also shows that thanks to the country's large shadow banking sector, at least $4 trillion to $5 trillion of global corporate debt is provided by private lenders.

China’s increasing appetite for debt poses a significant threat to the global economy, as the creditworthiness of its borrowers deteriorates and it surpasses the United States in having the largest group of corporate borrowers in the world, according to Standard & Poor's.

S&P also highlighted the growing role of the private debt market in China, as companies globally increasingly turn towards the debt markets to raise financing, and away from banks.