CX Daily: China’s Macro Leverage Ratio Edges Up to Fresh Record

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China’s macro leverage ratio edges up to fresh record

China’s macro leverage ratio hit a new high in the second quarter of 2024, although the pace of growth slumped compared with the first three months of the year amid weakening household and business borrowing, according to a new report from a state-backed think tank.

The ratio, which measures outstanding nonfinancial debt as a percentage of nominal GDP, edged up to 295.6% at the end of June from 294.8% at the end of March, data from the National Institution for Finance and Development (NIFD) showed. The 0.8-percentage-point increase was sharply lower than the 6.8-percentage-point gain in the three months through March.