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China Should Prioritise Growth Over Debt Concerns - Advisor

CHINA PRESS
MNI (Singapore)

China should prioritize stabilizing growth rather than be concerned about a rapid rise in the macro leverage ratio (total debt/GDP) given the threat of a balance sheet recession, The Paper reported citing Zhang Xiaojing, director of the Chinese Academy of Social Sciences' Institute of Finance. Debt growth in the private sector is almost near record lows, while the total debt growth rate of the real economy has slowed to about 10% from past growth of 30-35%. Household sector debt growth has slowed to below 10% from a high of 50-60% in 2009, according to Zhang. The central government has a relatively low debt ratio and can issue more bonds, said Zhang.

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