CX Briefing: Panama Sues CK Hutchison for Port Rights

A rundown of the news making headlines in and around China:

Macro leverage ratio climbs: China’s macro leverage ratio hit a record high in the second quarter, due partly to continued low nominal GDP growth. The ratio — which measures household, nonfinancial company and government borrowing as a percentage of nominal GDP — exceeded 300% for the first time, with government debt expanding while household and corporate sector debt remain at historic lows, according to a National Institution for Finance and Development report released Wednesday. China’s nominal GDP growth slumped to 3.9% in the second quarter, as sustained low prices dragged growth to a low not seen since 2023, according to the report. The persistent sluggish prices have led to a decline in household income and wealth, while weighing on companies’ profits, undermining market confidence.