PBoC’s Zhou warns China’s leverage is ‘relatively high’
Governor says corporate sector debt has ballooned partly due to local government financing vehicles
People’s Bank of China governor Zhou Xiaochuan has issued a warning on high leverage in the country’s economy and urged more fiscal reforms to constrain local government debts.
In his speech on October 15 during the Group of 30’s International Banking Seminar, Zhou said the leverage ratio of the economy “as a whole is relatively high” and the main problem lies in a “fairly high corporate debt-to-GDP ratio”.
“People may ask why the corporate sector had such a high leverage ratio and why the
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