“Some Chinese firms have entered the Ponzi stage because return on investment has come down very fast. As a result, leverage will be rising and zombie companies increasing.”
As Bloomberg reports, Chinese borrowers are set to take out some CNY7.6 trillion in new loans this year just to pay interest on their existing borrowings. That's according to Beijing-based Hua Chuang Securities Co., whose data Bloomberg used to construct the following chart:
http://www.zerohedge.com/news/2015-11-19/chinas-minksy-moment-12-trillion-ponzi-financing
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