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ECONOMY

Let Market Play the Decisive Role in Deleveraging, Says Central Bank

By Guo Nan and Han Wei
The People's Bank of China has issued a research paper that says market forces need to play the decisive role in reducing the debt in the country. Photo: IC
The People's Bank of China has issued a research paper that says market forces need to play the decisive role in reducing the debt in the country. Photo: IC

(Beijing) — China should prudently manage efforts to reduce debt by letting market forces play a decisive role while the country tries to deflate asset bubbles without setting off a liquidity crisis, according to a central bank working paper published Wednesday.

The paper, issued by the research bureau of the People’s Bank of China (PBOC) on Wednesday, explained factors pushing up China’s leverage ratio and discussed its impact on financial stability.

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