Rising household debt in China is an overlooked factor which is a major hidden danger to China 's economy , warns financial Times . China 's medium and long - term household loans reached CNY21.8tn ( $ billion ) by the end of April this year , accounting for 60 % of loans in the country , and as of the end of 2012 , 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.