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
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.