BEIJING, Sept 2 Yi Gang, a People's Bank of
China deputy governor, said on Friday that China needs to
stabilise the leverage ratio in the economy, though he noted use
of debt capital is likely to increase in the short term.
China's leverage ratio rose nine percentage points last
year, which was too fast, and China needed to focus on slowing
that rate of increase, Yi said in an interview with state
television ahead of G20 meetings in Hangzhou this weekend.
Combined government, household, and corporate leverage, or
debt capital deployed in the economy, was 234 percent of annual
output at the end of 2015, which was high compared with other
countries, Yi said.
In an interview on Thursday, Yi said China's monetary policy
would keep liquidity "reasonable and abundant" and create an
"appropriate and sound environment" for structural reform,
reiterating central bank's policy.
(Reporting by Beijing Monitoring Desk and Elias Glenn; Editing
by Eric Meijer)