## Figure 1.8. China: Deleveraging and De-risking Progress

## Source details

**Canonical URL:** [Figure 1.8. China: Deleveraging and De-risking Progress](https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-8.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-8.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-8.pdf.json)

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### Investment Products and Small-to-Medium Bank Claims on Financial Institutions
- Panel title: "Investment Products and Small-to-Medium Bank Claims on Financial Institutions"
- Measurement: "Three-month change, trillions of renminbi"
- Chart axis markers visible: –4, –2, 0, 2, 4, 6, 8
- Time labels visible: 2015, 16, 17, 18
- Caption context: "Regulatory tightening has slowed the buildup of risks in the financial sector ..."

### Corporate Defaults and Corporate Bond Spreads
- Panel title: "Corporate Defaults and Corporate Bond Spreads"
- Measurement: "(Billions of renminbi, basis points)"
- Annual defaulted bonds scale label: "Annual defaulted bonds (billions of renminbi, right scale)"
- 2018 pace label: "2018 pace (billions of renminbi, annualized, right scale)"
- Time labels visible: 2014, 15, 16, 17, 18
- Yield spread label: "Yield spread of AA– bonds to five-year government bonds (basis points, left scale)"
- Specific numerical axis markers visible: 0, 5, 10, 15, 20, 25, 30, 35, 40, 45

### Leverage at Nonfinancial Traded Companies
- Panel title: "Leverage at Nonfinancial Traded Companies"
- Coverage: "(Top 100 Chinese firms by assets)"
- Note on measurement: "In panel 3, leverage is measured as the ratio of liabilities to common equity."
- Time labels visible: 2010, 11, 12, 13, 14, 15, 16, 17, 18:Q1
- Numerical markers visible on chart: 4.0, 4.5, 5.0, 5.5, 6.0, 6.5

### Overall Messages Shown on the Figure
- "Regulatory tightening has slowed the buildup of risks in the financial sector ..."
- "... and led to tighter credit conditions for weaker borrowers ..."
- "... but the deleveraging process is far from complete."

*Sources: Asset Management Association of China; Bloomberg Finance L.P.; CEIC; People’s Bank of China; S&P Global Market Intelligence; and IMF staff calculations.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-8.pdf_