The level of state debt is far below danger levels, suggesting there is room for China to issue more treasury bonds this year, according to a mainland official.
The comments by Li Jiange, deputy director of the State Council Office for Restructuring the Economic System, came as officials announced the Government's intention to issue treasury bonds worth at least last year's level of 150 billion yuan (about HK$140 billion).
An announcement will be made during the National People's Congress in March. The proceeds will be used to sustain economic growth in the wake of the global downturn.
Mr Li, quoted yesterday by the Economic Daily, said China's debt level would be higher if it included contingent liabilities such as the non-performing loans (NPLs) of state banks and rural liabilities.
Salomon Smith Barney senior economist Huang Yiping estimated that China's outstanding treasury bonds were about 15.3 per cent of its gross domestic product.
The level could reach 70 per cent if contingent liabilities were included, Mr Huang said.