China's debt sustainability nearing limit as leverage tops 280% of GDP

China is approaching its limit of debt sustainability as total leverage of the country’s economy now tops 280% of gross domestic product, South China Morning Post reported, citing Primavera Capital Group founder and Chairman Fred Hu. Hu’s remarks came at a Fung Global Institute forum also attended by Liu Mingkang, the former chairman of the China Banking Regulatory Commission, who said that time was running out for the government to reform China’s financial system and liberalize its credit markets enough to end demand for off-balance sheet lending–though he suggested the risks from such shadow banking “are controllable.”