the People Bank’s of China will amend monetary policy this year to provide cheaper liquidity to banks that lend to the private sector and to help those banks increase their capital base, potentially leading to more private sector borrowing. Research from Natixis Asia found the country's corporate debt fell from 134% in 2017 to 128% last year, while household debt rocketed due to rising mortgages and credit card debts. Public debt also rose, attributed to on-balance-sheet local government debt. However, off-balance-sheet local government debt and central government debt increased at a slower rate.
The People's Bank of China will amend monetary policy this year to provide cheaper liquidity to banks that lend to the private sector and to help those banks increase their capital base, potentially leading to more private sector borrowing. Research from Natixis Asia found the country's corporate debt fell from 134% in 2017 to 128% last year, while household debt rocketed due to rising mortgages and credit card debts. Public debt also rose, attributed to on-balance-sheet local government debt. However, off-balance-sheet local government debt and central government debt increased at a slower rate.