Shoppers browse what’s on offer in a store in Lijiang, Yunnuan province. The Chinese economy has a very high national savings rate, and with banks being the main financial intermediaries, China’s debt levels are naturally higher than those of most other countries. Photo: Xinhua
Opinion
Opinion
The View
China must not choke off the private sector’s access to credit in the name of deleveraging
- With state-owned enterprises soaking up the bulk of bank loans, the economy is in fact underleveraged. Many private businesses depend on freely flowing credit to survive and thrive
- If the government truly wants to build a competitive financial system, it must allow banks to run like banks
Shoppers browse what’s on offer in a store in Lijiang, Yunnuan province. The Chinese economy has a very high national savings rate, and with banks being the main financial intermediaries, China’s debt levels are naturally higher than those of most other countries. Photo: Xinhua