At the end of 2017, the debt ratio in China is 14%. The total external debt risk can be controlled

According to the latest data released by the State Administration of Foreign Exchange on March 29, as of the end of 2017, China’s debt ratio was 14%, and all indicators such as debt ratio and debt service ratio were within the internationally recognized safety line.

The debt ratio refers to the ratio of the balance of external debt at the end of the year to the GDP of the year. At present, the internationally recognized debt ratio security line is 20%; the debt ratio is the ratio of the balance of foreign debt at the end of the year to the export revenue of goods and services trade of the current balance of payments statistics. At present, the internationally recognized debt rate safety line is 100. %, the security line for the proportion of short-term foreign debt and foreign exchange reserves is 100%.

According to the data, as of the end of December 2017, the balance of China's full-caliber foreign debt was 1117.7 billion yuan; the debt ratio was 14%, the debt ratio was 71%, the debt-repayment ratio was 7%, and the proportion of short-term foreign debt and foreign exchange reserves was 35%.

According to the State Administration of Foreign Exchange, the above indicators are all within the internationally recognized safety line, and China’s foreign debt risk is generally controllable.

Regarding the main reason for the increase in the balance of foreign debt in China, the State Administration of Foreign Exchange said that this is the result of the superposition of macroeconomic stability and the release of policy dividends.

"On the one hand, China's economy continues to maintain a stable and positive trend, various economic development indicators have grown steadily, the flexibility of the two-way floating exchange rate of the RMB exchange rate has been significantly enhanced, and exchange rate expectations have generally remained stable. These are the basic factors for the growth of China's foreign debt; on the other hand, many The reform measures were successively introduced to improve the degree of cross-border financing of domestic entities. In 2017, the Central Bank and the Foreign Exchange Bureau further improved macro-prudential management policies for full-calibre cross-border financing and actively supported financial institutions and enterprises in independently developing cross-border financing in both local and foreign currencies. In order to enable domestic institutions to make full use of 'two markets and two resources', continuously expand financing channels and reduce financing costs. At the same time, the degree of opening up of the inter-bank bond market is increasing, especially the 'bond bond' between the Mainland and Hong Kong, and further overseas. Investors have opened up domestic financial markets, and overseas institutions have been willing to increase their holdings of domestic bonds, and the scale of domestic bonds has continued to increase,” said the SAFE.