China's hidden debt spurs warnings of more Moody's downgrades

Credit rating agencies are cautioning against China's hidden debt. This week, Moody's Investors Service downgraded China's credit rating while also signaling the possibility that it may do the same for dozens of local government financing vehicles (LGFVs) funding infrastructure projects, as well as for state-owned banks.  There are no official estimates of China's hidden-debt pile, but various estimates have suggested it could be somewhere between 30 trillion and 50 trillion yuan. In comparison, China's gross domestic product (GDP) for all of 2022 was around 120 trillion yuan.

Will China's sprawling debt problem worsen?

Turmoil in China's housing market, coupled with weak consumer sentiment, is weighing on the nation's economy. Once the country's largest property developer, Evergrande is now facing a lawsuit that may end with its liquidation, while Dalian Wanda Group, China's largest mall operator, is shedding assets in an effort to avoid a default. Debt-laden local governments are also struggling in the world's second-largest economy. How will Beijing resolve its debt mess? Here is a selection of stories that will help you catch up on the latest.