{
  "title": "Assessing China’s Corporate Sector Vulnerabilities",
  "publication": "IMF Working Papers, March 30, 2015",
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  "summary": "This paper documents and assesses the risk stemming from rising corporate indebtedness in China using a firm-level dataset of listed firms.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Leverage on average is not high across listed firms.\n- There is a fat tail of highly leveraged firms accounting for a significant share of total corporate debt.\n- Highly leveraged firms are mainly concentrated in the real estate and construction sector and state-owned enterprises in general.\n- Real estate and construction firms tend to face lower borrowing costs.\n- Real estate and construction firms could withstand a modest increase of interest rate shocks despite their high leverage.\n- The corporate sector is vulnerable to a significant slowdown in the real estate and construction sector."
    },
    {
      "heading": "Sensitivity analysis and scenarios",
      "content": "- In the event of a 20 percent decline in real estate and construction profits, the share of debt that would be in financial distress would rise to about a quarter of total listed firm debt."
    },
    {
      "heading": "Subject coverage and keywords (as labeled in the source)",
      "content": "- Corporate sector, Economic sectors, Financial crises, Financial institutions, Global financial crisis of 2008-2009, Loans, Manufacturing, Mining sector\n- Keywords: China, construction firm, construction sector firm, Corporate sector, firm distribution, Global, Global financial crisis of 2008-2009, interest rate shock, leverage, listed firm, Loans, Manufacturing, Mining sector, nonfinancial firm, real estate, state-owned enterprise (SOE), WP\n\nSource: Assessing China’s Corporate Sector Vulnerabilities, Mali Chivakul and Waikei Raphael Lam, IMF Working Paper No. 2015/072 (March 30, 2015).\n\n---\n\n Content in this bundle\n\n- Wp1572\n  - Wp1572 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp1572 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/assessing-chinas-corporate-sector-vulnerabilities-42819"
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    "Authors: Mali Chivakul, Waikei R Lam",
    "Published: March 30, 2015",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484308783.001",
    "Leverage on average is not high across listed firms.",
    "There is a fat tail of highly leveraged firms accounting for a significant share of total corporate debt.",
    "Highly leveraged firms are mainly concentrated in the real estate and construction sector and state-owned enterprises in general.",
    "Real estate and construction firms tend to face lower borrowing costs.",
    "Real estate and construction firms could withstand a modest increase of interest rate shocks despite their high leverage.",
    "The corporate sector is vulnerable to a significant slowdown in the real estate and construction sector.",
    "In the event of a 20 percent decline in real estate and construction profits, the share of debt that would be in financial distress would rise to about a quarter of total listed firm debt.",
    "Corporate sector, Economic sectors, Financial crises, Financial institutions, Global financial crisis of 2008-2009, Loans, Manufacturing, Mining sector",
    "Keywords: China, construction firm, construction sector firm, Corporate sector, firm distribution, Global, Global financial crisis of 2008-2009, interest rate shock, leverage, listed firm, Loans, Manufacturing, Mining sector, nonfinancial firm, real estate, state-owned enterprise (SOE), WP",
    "**Wp1572**"
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