BEIJING, May 6 (Xinhua) -- China's macro leverage ratio dropped 2.6 percentage points from the end of 2020 to 276.8 percent by the end of the first quarter, reported Xinhua Finance on May 1.
The Xinhua-run financial information platform citing an article posted on the website of Chinese central bank, the People's Bank of China (PBOC) said that China kept overall debts level basically stable when effectively supporting the epidemic prevention and control in the first quarter.
By sectors, the overall leverage ratio of non-financial enterprises in China was 160.3 percent by the end of March, down 0.9 percentage point from the end of last year. For governments of various levels, the overall leverage ratio was 44.5 percent, down 1.3 percentage points from the end of 2020.
Since 2017, China's deleveraging efforts have generated relatively sound results. In 2017, China bade farewell to the rapid rises of macro leverage ratio in the previous years and managed to lower the macro leverage ratio by three percentage points in 2018. During 2017 and 2019, the macro leverage ratio in China rose in total 7.3 percentage points, far less than the rapid rises in the years prior.
In 2020, China's resilient economy pumped strong vitality into the real economy, helping lower the macro leverage ratio by 1.6 percentage points in the fourth quarter of 2020 after continous rises in the first three qaurters of last year.
This year, China's macro leverage ratio is expected to remain basically stable in view of the weakening influences from the epidemic and stabilizing economic growth, forecasted the article. (Edited by Duan Jing with Xinhua Silk Road, firstname.lastname@example.org)