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China to survey 30,000 households about debt levels as financial risks continue to rise

  • Study will provide government with a clearer picture of people’s repayment capabilities and could influence future macroeconomic policy decisions, lender says
  • Ratio of household debt to gross domestic product rose by 2.1 percentage points in first six months to 55.3 per cent, think tank says

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Despite the government’s concerns about rising debt levels, Chinese consumers continue to pump their money into property. Photo: Reuters
Frank Tangin Beijing

China is preparing to carry out a broad survey of households to identify the financial risks they face and find ways to boost consumption and support the economy as a punishing trade war with the United States heads towards its 15th month.

The study by the People’s Bank of China (PBOC) will begin in mid-October and involve about 30,000 urban households across the country, according to regional government notices and a promotional video produced by the central bank.

With a primary focus on debt, the research will seek to determine to what extent households are exposed to downdrafts in the property sector and how that could undermine financial stability on a national level.

Interviews will be conducted at bank branches and participants will be questioned about their income, spending, financial assets, mortgage loans and other forms of debt, the bank said.

The information collected will provide the government with a clearer picture of household debt levels and people’s repayment capabilities, which could in turn influence future macroeconomic policy decisions, it said.
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