Chart of the Day: Only One Asia Economy Has De-Leveraged Since The GFC. Guess Who?

China: Offshore Debt Surging, Financial Risks Escalating

Economist

Richard Iley

Macroeconomics

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/043/583/original/Screen%20Shot%202018-02-01%20at%206.03.21%20PM.png?1517479426" class="editor-image img-responsive" data-smartkarma-image-id="43583"></figure><div class="content-highlight">
<p>China bulls will like to tell you that the economy is deleveraging in line with the authorities wishes. A number of key metrics however show that this is not the case although the latest data from the Bank of International Settlements (BIS) do show that China's total leverage is nonetheless growing unusually slowly. <strong>China may be de-leveraging but it does appear to have dis-leveraged over the last year or so. </strong></p>
<p>In the 12 months to 2017Q2 (the latest data available), the BIS's gauge of total credit…</p>
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China bulls will like to tell you that the economy is deleveraging in line with the authorities wishes. A number of key metrics however show that this is not the case although the latest data from the Bank of International Settlements (BIS) do show that China's total leverage is nonetheless growing unusually slowly. China may be de-leveraging but it does appear to have dis-leveraged over the last year or so. 
In the 12 months to 2017Q2 (the latest data available), the BIS's gauge of total credit…


MSCI AC Asia ex Japan Index (MXASJ INDEX)

Chart of the Day: China Isn't Deleveraging (Yet) But Most of Asia Is!