Central bank official says China leverage rising at ‘alarming pace’

Proactive action: PBoC and other regulators have ramped up the pressure on a number of fronts as they look to contain financial risks after years of debt-fuelled stimulus. – Reuters

SHANGHAI: China’s level of leverage is rising at an “alarming pace”, particularly in the finance sector, a senior central bank official said in a commentary, amid growing concern by the country’s senior leaders over financial security.

The official Xinhua news agency cited Xu Zhong, head of the People’s Bank of China’s (PBoC) research bureau, as saying the country needed to deleverage at a “proper pace” to reduce financial sector debt and avoid systemic financial risk.