Macro Leverage Will Remain Stable Going Forwards

China’s macro leverage in Q1 reached 281.8%, up from 273.2% in the previous quarter, according to the China Economic Daily. Looking forward, policy makers will stabilise macro leverage through policy support, deepening reform and opening up, the paper said. One expert noted Q1's increase was caused by a slowdown in nominal economic growth, and banks' usual new loan increases at the start of the year. The Government has front-loaded local government bond issuance in Q1 and expanded the central fiscal deficit, which has resulted in the macro leverage increasing, another expert said. (Source: China Economic Daily)