PBOC Joins Hedge Fund Chorus, Expresses Alarm Over Chinese Leverage

Chinese leverage has reached worrying proportions. This commentary isn’t new. Hedge fund managers and market analysts have been providing variations of this analysis for years. What is new in the most recent warning is that it is coming from China’s central bank. Much of what China has been doing on the margin over the last few years should stop or at least slow to a measured pace, the PBOC official was quoted as saying.

How long can Chinese leverage continue?

Chinese leverage usage has created debt-burdened businesses that are not likely to keep up with their payments, is a charge made...