China thinks it can play the stimulus game indefinitely. But debt binges have hangovers.
That spending came at great cost. China has stacked up almost 30 trillion yuan of LGFV debt, according to HSBC Holdings Plc, or roughly 30 percent of GDP. Once LGFV debt and special purpose bonds are accounted for, Beijing year after year is racking up a fiscal deficit in the neighborhood of 8 percent of GDP, more than twice the official figure, the bank estimates.