(Yicai Global) Sept. 14 -- Private debts in China, which mostly come from mortgages, have risen in recent years but are not spiraling out of control, according to the National Bureau of Statistics.
“Residents have bought more houses recently, so debts have risen but are still low compared with international figures,” spokesman Mao Shengyong said at a press briefing today. “Debts are now more reasonable and controllable, and the risks can absolutely be controlled.”
Private debts were equal to 48.4 percent of gross domestic product in the fourth quarter of last year, he added, noting that the figure was 9 percent less than in Japan and about 30 percent lower than in the United States, according to data from the Bank for International Settlements. The typical rate in developed countries is about 28 percent higher than in China, Mao said.
Repayment risks concerning individuals are not particularly high, and residents can settle their debts by themselves, so there is no major impact on overall economic operations, Mao added.
Editor: James Boynton