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. The latest data from the National Bureau of Statistics (NBS) shows that credit growth slowed down slightly last month, but remains above the government's target for 2018.
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.