01974cas a2200253 a 4500 AALejournalIMF015138 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484308783 1018-5941 BD-DhAAL BD-DhAAL Chivakul, Mali. Assessing China's Corporate Sector Vulnerabilities / Mali Chivakul, Waikei Lam. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper documents and assesses the risk stemming from rising corporate indebtedness in China using a firm-level dataset of listed firms. It finds that while leverage on average is not high, there is a fat tail of highly leveraged firms accounting for a significant share of total corporate debt, mainly concentrated in the real estate and construction sector and state-owned enterprises in general. The real estate and construction firms tend to face lower borrowing costs and could withstand a modest increase of interest rate shocks despite their high leverage. The corporate sector is however vulnerable to a significant slowdown in the real estate and construction sector. Our sensitivity analysis suggests that the share of debt that would be in financial distress would rise to about a quarter of total listed firm debt in the event of a 20 percent decline in real estate and construction profits. Mode of access: Internet Lam, Waikei. IMF Working Papers; Working Paper ; No. 2015/072 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/072/001.2015.issue-072-en.xml IMF e-Library