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FT: China debt load reaches record high

The Financial Times story published over the weekend revealed that the Chinese debt has ballooned to record highs, highlighting concerns over the pace of growth in the country’s total debt.

Key Points:

China's total debt rose to a record 237 per cent of gross domestic product in Q1

Total net debt to Rmb163tn ($25tn) at the end of March, including both domestic and foreign borrowing, according to Financial Times calculations

"far above emerging-market counterparts"

More worrying is the speed at which it has accumulated - Chinese debt was only 148 per cent of GDP at the end of 2007

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Analyst, Zhou Hao at Commerzbank, suggests that on the Chinese policy front, given the uncertain growth outlook, they still expect the PBoC to cut the policy rates by 25bps in Q2, and broader easing policies will be maintained in China over the remainder of the year.
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