State-Owned Enterprises Leverage as a Contingency in Public Debt Sustainability Analysis: The Case of the People’s Republic of China

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dc.contributor.authorADB; Ferrarini, Benno; Hinojales, Marthe
dc.date.accessioned2021-10-05T15:03:52Z
dc.date.available2021-10-05T15:03:52Z
dc.date.issued2018-01
dc.descriptionThe size of the state-owned enterprise contingent liability in relation to the People’s Republic of China’s gross domestic product appears to be manageable if dealt with decisively and bar a continuation of the past. The leverage of state-owned enterprises (SOE) in the People’s Republic of China (PRC) has grown to a large liability. While there is no room for complacency, there is no need for panic either; even if authorities had to step in to mop up as much as 20% of SOE debt at risk gone bad. This would appear to be manageable at roughly 2.7% of the gross domestic product in 2016 or 5.5% by 2021. The paper demonstrates a method to include SOE debt as a contingent liability in the public debt sustainability assessment framework. The authors of the paper further conclude that while corporate leverage is large, it appears fully manageable.
dc.format.extent24
dc.identifier.isbnN/A
dc.identifier.isbnN/A
dc.identifier.issn2313-6537
dc.identifier.issn2313-6545
dc.identifier.urihttps://www.adb.org/publications/state-owned-enterprises-public-debt-sustainability-prc
dc.identifier.urihttps://hdl.handle.net/20.500.14540/5478
dc.subject.otherGovernance and public sector management
dc.subject.otherPublic financial management (budget)
dc.titleState-Owned Enterprises Leverage as a Contingency in Public Debt Sustainability Analysis: The Case of the People’s Republic of China
local.publication.countryGeorgia
local.publication.countryMongolia
local.publication.countryPhilippines

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