中國

As China Inc shies of debt, next stimulus may flop

China's growth boomed in 2009-2010, on a wave of credit that funded investment in GDP-boosting real estate and infrastructure projects. Now GDP may miss the government's 7.5 per cent target, and Chinese companies seem reluctant to borrow more.

According to the People's Bank of China, the central bank, companies' appetite for borrowing was the weakest in the third quarter of this year than at any time since it began surveying loan demand in 2004 (see first chart).

Why the sudden caution?

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