China state planner says growth of overall leverage ratio clearly slowing, stabilizing

BEIJING (Reuters) – The growth of China&rsquo-s overall leverage ratio has been clearly slowing and is now stabilizing, the country&rsquo-s state planner said on Monday.

China will focus on lowering leverage ratios among state-owned firms and winding down of &ldquo-zombie firms&rdquo- to reduce leverage ratios and control debt risks, the National Development and Reform Commission said in a statement on its website.

China&rsquo-s government has vowed to tackle high leverage in the economy, but its high debt levels have led credit ratings agencies, including S&P Global Ratings last week, to cut the country&rsquo-s sovereign credit rating.