PBOC official: leverage has stabilized, debt increase is slowing

According to a People's Bank of China (PBOC) official who made written statements in the Financial News, a PBOC-operated newspaper, China's leveraging has stabilized, and Chinese debt growth is also seen slowing its pace.

Key highlights

Leverage ratio has stabilized.

The pace of debt increases into Q1 has slowed.

China plans to hold the leverage ratio under 'firm control', plans to keep liquidity reasonably ample.

PBoC intends to maintain reasonable growth in credit supply, social financing.

High external risks, as well as a risk of slowing domestic demand, are the biggest threats to China's economy right now.