IMF: China Bad Debt 7 pc of GDP

Xinhua: China's corporate debt risks rising but manageable: IMF

It estimates that bank loans potentially at risk in China amount to almost 1.3 trillion U.S. dollars, which could translate into potential bank losses of 756 billion dollars, or about 7 percent of the gross domestic product, if assuming a higher loss ratio of 60 percent on all corporate loans potential at risk.

"This number may seem large but it is manageable, given China's bank and policy buffers and continued strong growth in the economy," Vinals said. "Equally importantly, the Chinese authorities are aware of these vulnerabilities and are putting in place measures to deal with the overly indebted corporations."