Analysts tend to focus on the default risk of China's huge debt burden.

Default risk can be overcome by the Chinese government socializing the debt burden.

The real risk lies in the unproductive use of debt which will affect China's productivity.

The consensus on Wall Street is that debt is the most pressing problem facing the Chinese economy. The long-term risks of piling on debt have also been well-documented before.

The consensus view may be wrong, however, according to Macquarie's most recent global macro outlook report authored by Peter Eadon-Clarke's team.

"It’s popular to argue that China will run into a debt crisis in either local government debt or corporate debt," the team noted. "By contrast, our long-held view is that China’s debt problem is very different from many other countries."

That's because, the team argues, China's corporate debt could be socialized by the government.

"Policy-makers could reshuffle debt among different entities: central government, local government, SOEs and banks," they noted. "The discussion on debt/equity swap suggests that it’s possible to transfer the SOE debt burden to governments and banks. By doing so, the government also lowers the odds for a corporate debt crisis."