China leverage rising at 'alarming pace': PBOC official

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 on Monday 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. "China's overall leverage level is reasonable but is rising at an alarming pace, especially in the financial sector," Mr Xu said. The orig…