China’s debt-to-GDP ratio reached 251% at the end of June, an increase from 147% at the end of 2008, Financial Times reported, citing estimates from Standard Chartered. Chinese policy makers have warned that the combination of slowing headline growth rates and ever-increasing debt dependency is unsustainable and has led to misallocation of capital, resulting in massive overcapacity. The growing dependency shows no sign of being reversed, with the debt-to-GDP ratio increasing by 17% in the last six months. Rather than reining in credit, the government has let it accelerate because of fears that slowing growth could trigger a hard landing. Estimates of China’s debt-to-GDP ratio vary depending on the type of credit included.