That is total rubbish!
China's balance sheets are totally cooked. National debt is considered low, but it does not include all the debts of various ministries, like the ministry of railways (big big spender).
The banks keep bordering on insolvency only to have their books cleaned by transferring the loans off the books to asset management companies that don't have money to buy them - so the bank loans them money! The banks earn huge profits because the state sets the deposit and leaning rates with usually a 3 point spread…
Instant profits,since its the same at all banks!
The foreign reserve are worthless in China because you can't do anything with them in China - they are a symbol of weakness not strength. By manipulating its currency and maintaining capital controls it amasses trillions in reserves, but it can only invest those abroad, where they earn almost nothing. Each dollar of foreign reserves has an equivalent amount of domestic debt - because the Chinese government prints money to buy the foreign exchange from exporters, and then issues domestic bonds to clean up the liquidity - which are bought by domestic banks. The whole country is a pyramid scheme waiting to blow - i could go on and on, but I won't bore you to death…..