China Debt Ratio Seen Climbing on Stimulus Costs: Report

China’s overall debt-to-GDP ratio may increase in the next few years as the government borrows to stimulate the economy while GDP growth fails to keep pace, Yicai.com reported citing a report by the Chinese Academy of Social Sciences. The so-called leverage ratio may rise to 268% in 2022 from the current 263.1%, the report said. The leverage ratio of Chinese residents has risen the fastest among the sectors, from less than 5% in 2000 to the current 62.2%, which has surpassed Germany and is closer to that of Japan, said the report. It warned that excessive debt held by the U.S. household sector had led to the 2008 financial crisis.