PBOC’s Chen Calls for Strengthening Research on Leverage Ratio

People’s Bank of China Deputy Governor Chen Yulu called for more research on leverage ratios, especially those involving corporate borrowing, to find ways to reduce debt-related risks to the financial system and help restrain soaring debt levels.

Chen said deleveraging should be done in an orderly and gradual manner, and a thorough analysis is needed of the economy’s leverage ratio changes and debt structure, according to a statement on the PBOC website Wednesday that summarized his remarks to a recent seminar on corporate debt in Beijing.

— With assistance by Yinan Zhao

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