China plagued by growing burden of corporate bond repayments

TOKYO -- Chinese companies are having a tough time paying off debt, with corporate bonds due to mature in 2024 hitting a record high of 6.8 trillion yuan ($945.53 billion), up about 20% from last year.

In particular, the burden on local government financial vehicles (LGFVs) is growing due to reckless fundraising practices. The longer the debt problem remains due to government support, the greater risk China's financial system will face and the longer its economic stagnation will persist.