PBOC Governor Pan Gongsheng wrote in Qiushi that growth in China’s financial aggregates has slowed, which supports keeping macro leverage broadly stable. He said the recent rapid rise in macro leverage reflected countercyclical policy that boosted financial aggregate and debt growth while low inflation weighed on nominal GDP. The financing market has shifted from supply constraints to demand constraints; effective financing demand can be met and social financing conditions remain relatively loos

PBOC Governor Pan Gongsheng wrote in Qiushi that growth in China’s financial aggregates has slowed, which supports keeping macro leverage broadly stable. He said the recent rapid rise in macro leverage reflected countercyclical policy that boosted financial aggregate and debt growth while low inflation weighed on nominal GDP. The financing market has shifted from supply constraints to demand constraints; effective financing demand can be met and social financing conditions remain relatively loose. He urged balancing short- and long-term aims and warned against financial aggregate growth outpacing real-economy demand, which could create idle funds, lift macro leverage further, impede clearance of excess capacity and inefficient firms, and hurt economic efficiency.