China’s banking regulator has admitted publicly that levels of household debt are becoming a cause for concern, the South China Morning Post reports.
China must “lower corporate debt ratio and curb the leverage ratio of households,” said Guo Shuqing, chairman of the China Banking Regulatory Commission, during an interview published in the People’s Daily Monday.
Though China’s government has repeatedly declared its determination to rein in financial risk in 2018, this is the first time that Guo has raised the issue of household debt in public, according to the SCMP.
“The financial system is still prone to risks… And any financial turmoil will greatly endanger the country’s economic and social development,” said Guo.