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China Macro Leverage Growth Expected In H2

CHINA PRESS

China’s macro leverage ratio, a measure of debt to nominal GDP, will increase passively in H2 if nominal economic growth remains lower than debt growth, according to a National Institute of Finance and Development (NIFD) report. The macro leverage ratio rose 7.5 percentage points in H1, the report said. Liu Lei, secretary-general of the National Balance Sheet Research Center, said property support to stabilise real estate investment may ease increases in macro leverage. However, in the long term China requires domestic-demand growth and inflation to promote a rebound in nominal GDP, according to Mingming, chief economist at CITIC Securities.

MNI Beijing Bureau | lewis.porylo@marketnews.com

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