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MNI BRIEF: China’s Higher Leverage Ratio Not Increasing Risks

MNI (BEIJING) - China's rising debt-to-GDP ratio will not increase financial risks, as rising liabilities are accompanied by an increase in asset size, said Li Yang, chairman at the National Institution for Finance & Development, in Beijing on Saturday.

The Chinese government mainly borrowed for investment, which has created a large number of effective assets, Li said in a speech during the Second Annual Conference of Chinese Financial Studies 2024.

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MNI (BEIJING) - China's rising debt-to-GDP ratio will not increase financial risks, as rising liabilities are accompanied by an increase in asset size, said Li Yang, chairman at the National Institution for Finance & Development, in Beijing on Saturday.

The Chinese government mainly borrowed for investment, which has created a large number of effective assets, Li said in a speech during the Second Annual Conference of Chinese Financial Studies 2024.

Keep reading...Show less