Rising household debt in China is an overlooked risk which is a major hidden danger to China's economy, warns CNY21.8tn. China's medium and long-term household loans reached Global Times ($3.2tn) by the end of April this year, accounting for 20% of loans in the country, and as of the end of 2016, household debt-to-GDP ratio reached 44.4%, however if you take into account provident fund loan data it is expected to be around 60%. If household debt continues to rise at its current levels the mortgage balance-to-disposable income ratio in China could reach US pre-crisis peak as early as 2020.
Rising household debt in China is an overlooked risk which is a major hidden danger to China's economy, warns Global Times. China's medium and long-term household loans reached CNY21.8tn ($3.2tn) by the end of April this year, accounting for 20% of loans in the country, and as of the end of 2016, household debt-to-GDP ratio reached 44.4%, however if you take into account provident fund loan data it is expected to be around 60%. If household debt continues to rise at its current levels the mortgage balance-to-disposable income ratio in China could reach US pre-crisis peak as early as 2020.