China Macro Leverage Ratio to Drop Further in H2: Yicai

China's macro leverage ratio at the end of this year may decrease by 8 percentage points y/y to 263% of its GDP, Yicai.com reported citing Liu Lei, an official at the National Institution for Finance & Development. Liu made the prediction after his research organization reported a total reduction of 4.7 pps in the first half, according to Yicai. Non-financial organizations reported four quarters of consecutive declines in leverages, while residents' leverages had been stable, Yicai said. The drop in macro leverage ratio was mostly due to faster economic growth, Liu was cited as saying. Authorities also proactively tightened credit with the growth of social financing falling to 11% at the end of June from 13.3% at the end of last year, Yicai said citing Ming Ming of Citic Securities.