BEIJING, March 10 China's corporate debt levels
are excessively high, the head of the central bank said on
Banks cannot support firms with high leverage, People's Bank
of China Governor Zhou Xiaochuan told reporters at a news
conference on the sidelines of the annual parliament session in
Zhou added that China's efforts to cut debt levels will be a
China needs to stabilise its overall debt levels and slow
down the pace at which debt is rising, deputy central bank
governor Yi Gang said at the same session.
China's credit growth has been "very fast" by global
standards, and without a comprehensive strategy to tackle the
debt overhang there is a growing risk it will have a banking
crisis or sharply slower growth or both, the International
Monetary Fund warned late last year.
Corporate debt has soared to 169 percent of gross domestic
(Reporting by Kevin Yao and Yawen Chen; Editing by Kim Coghill)