Zhou Xiaochuan, governor of the People’s Bank of China, has cautioned that corporate debt levels are too high, The Financial Times reported, citing comments given at a meeting with business leaders in Beijing. “Lending and other debt as a share of GDP, especially corporate lending and other debt as a share of GDP, is on the high side,” Zhou said, adding that highly leveraged economies were more vulnerable to macroeconomic risk. The Bank for International Settlements has warned that a recent spike in corporate and private debt in emerging markets was “eerily reminiscent” of the financial boom in advanced economies ahead of the global financial crisis.
Categories