The Institute of International Finance sees debt growth accelerating this year due to low interest rates and "loose financial conditions."
Nonfinancial corporate debt is at a record high, and for some companies the leverage is unsustainable, says an IIF paper.
Increased investor confidence in the stability of the yuan is expected to reduce outflows after a torrid 2015, a report says.
The deterioration reflects weaker economic performance in many developing economies, says the Institute of International Finance.