China is forecast to surpass the U.S. as the world’s largest corporate debt market for non-financial companies in the next two years, according to a report from Standard & Poor’s.
The rating agency expects the debt needs of companies in China to reach upwards of $18 trillion by the end of 2017, accounting for a third of the forecast $53 trillion in new debt and refinancing needs of global companies in the next five years. Debt includes bank loans and bonds and is drawn from public information collated by S&P.
“China is poised to overtake the U.S., and then the U.S. and euro zone combined,” said Jayan Dhru, senior managing director at S&P.
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