Research On Financial Deleveraging In China

In recent years,China's total financial volume has been developing at a faster rate than GDP and is in the leverage channel.Especially affected by the easy credit environment after the global financial crisis in 2008,asset price bubble and disorderly growth of financial innovation pushed the leverage ratio of all sectors in China to rise significantly.At present,China's macro total leverage level is close to the level of developed countries,and debt risks are constantly accumulating.Leverage risk is mainly concentrated in the non-financial enterprise sector,among which the state-owned enterprises and real estate industry are the most prominent,the hidden and contingent debt scale of local government sector is also large,and the household debt ratio also rises rapidly.Since 2015,China has gradually formed the overall approach of deleveraging,which is mainly reflected in the financial sector,the debt-to-equity policy of state-owned enterprises and the regulation of the real estate market.Although some results have been achieved,there are still many problems.Based on China's national conditions,and the current external environment,such as a trade war or institutional factors,the paper analyzes the problems in deleveraging in China.We have to face the following problems:macroeconomic regulation and control,government's recessive debt processing,residents and leverage,state-owned enterprises,debt-to-equity swap" landing,financial supervision system construction.In view of the above problems and the deleveraging experience of other countries,we puts forward some suggestions for China's deleveraging.As a macro-control strategy,deleveraging should not only focus on the financial sector,but also on the quality of economic growth and economic restructuring.We should adopt a prudent de-leveraging approach,including a prudent and neutral monetary policy,long-term supervision system of local government bonds,housing market reform,modern financial supervision framework and the development of direct financing market.