China’s macro leverage ratio down slightly at end-June – central bank publication

People cross a street during morning rush hour in front of the skyline of the CBD in Beijing
FILE PHOTO: People cross a street during morning rush hour in front of the skyline of the central business district (CBD) in Beijing, China December 15, 2020. REUTERS/Thomas Peter

September 8, 2021

BEIJING (Reuters) – China’s macro leverage ratio, which measures the economy’s overall indebtedness, stood at 274.9% at end-June, down 4.5 percentage points from the end of last year, China Finance said on Wednesday.

The drop was due to the receding impact of the COVID-19 epidemic on the Chinese economy and a decline in overall debt growth, China Finance, a financial magazine managed by the central bank, said, citing the Financial Survey and Statistics Department at the People’s Bank of China.

The macro leverage ratio is expected to remain basically stable in H2, it added.

(Reporting by Stella Qiu and Ryan Woo; Editing by Muralikumar Anantharaman)