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Corporate debt too high, warns PBOC chief

China must develop more robust capital markets, which will help reduce leverage in the corporate sector and boost equity financing, says central bank governor

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Corporate debt alone now stands at 160 per cent of China's GDP, according to the Organization for Economic Cooperation and Development. Sectors with especially high leverage include cement, steel, coal and flat glass.

Beijing

PEOPLE'S Bank of China governor Zhou Xiaochuan sounded a warning over rising debt levels, saying corporate lending as a ratio to gross domestic product had become too high and the country must develop more robust capital markets.

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