China has surpassed U.S.as the largest issuer of corporate debt.

As the world’s largest issuer of corporate debt, according to a report released today by S&P. However, S&P approximates that around one-quarter to one-third of China’s corporate debt comes from the country’s shadow banking sector - non-bank lending that caters to borrowers who have difficulty obtaining financing. In turn, this raises red flags of the ability for Chinese companies to make interest payments and repay their bank loans.