China’s debt bubble is expanding: China’s total Debt-to-GDP ratio reached a record 336% in Q2 2025. This figure has risen +78 percentage points over the last 10 years. Non-financial corporates have the highest Debt-to-GDP ratio of 142%, followed by the government at 93%. The government’s percentage has more than DOUBLED since 2015. Meanwhile, households and financial corporates carry Debt-to-GDP ratios of 60% and 41%, respectively. The world’s second-largest economy has never been this indebted.(The Kobeissi Letter)