If China’s traditional and shadow banking systems end up holding loans amounting to more than 300% of GDP, then somewhere there will be companies, households, and government entities with bank deposits or other fixed-income assets equal to over 270% of GDP (with the other 30% or so being investments in bank equity). Those apparently low-risk claims cannot really be worth 270% of Chinese GDP if a significant proportion are matched by loans to borrowers who cannot repay.