"McKinsey Global Institute says that from 2007 to 2014, China’s total debt, including debt of the financial sector, nearly quadrupled, to $28.2 trillion, or from 158% of GDP to 282%. Another new report, by economists at the Hong Kong Monetary Authority says the rise in indebtedness has been partly related to a big stimulus package launched in 2008 to 2009 following the U.S. mortgage debt bomb, a debt bomb that was noted by a few, like Addison Wiggins, and denied by most. There is no equal in China to the housing and derivatives bubble collapse in the U.S.. There’s no AIG with mortgage backed securities it bought on triple leverage. There’s no subprime mortgages in the market. Unlike the deficit-financed stimulus packages in the West, led by the Toxic Assets Relief Program in ’08, China’s trillion dollar stimulus package was funded mainly by state bank credit at the muni level. This was done largely to keep China’s full-employment policy in full effect. Its export market had collapsed because of the U.S. and Europe. It had to do something or face millions of Chinese looking for work and having no one to buy Made in China."
http://www.forbes.com/sites/kenrapoza/2015/05/21/china-debt-bomb-more-like-a-bottle-rocket/