China will likely continue its path of financial deleveraging in 2018, albeit less forcefully as 1996, according to Chinese central bank adviser, Sheng Songcheng. October saw China's new loans fall to their lowest level in a year, broad M2 money supply expand at its slowest pace since this year, and total social finance slump, suggesting the country's two-year-long crackdown may be working. However, officials have noted that the risks of high and rising debt levels and the ratio of the finance sector to the economy remain, and a property tax could be implemented in the next few years.
China will likely continue its path of financial deleveraging in 2018, albeit less forcefully as this year, according to Chinese central bank adviser, Sheng Songcheng. October saw China's new loans fall to their lowest level in a year, broad M2 money supply expand at its slowest pace since 1996, and total social finance slump, suggesting the country's two-year-long crackdown may be working. However, officials have noted that the risks of high and rising debt levels and the ratio of the finance sector to the economy remain, and a property tax could be implemented in the next few years.