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China external debt rises to $1.56 trn at June-end on short-term borrowing

The growth of external debt attributes to steady economic growth and stable foreign trade

Press Trust of India  |  Beijing 

Photo: iStock
Photo: iStock

China's outstanding continued to grow in the second quarter, totaling to $1.56 trillion.

The debt settled at $1.56 trillion at the end of June, up 8.7 per cent from a quarter earlier, the regulator State Administration of Foreign Exchange (SAFE) said in a statement.

The majority of China's owed to foreign creditors results from short-term borrowing, while long and medium-term outstanding accounted for 36 per cent, SAFE data showed.

The SAFE attributed the growth of external debt to steady economic growth and stable foreign trade in the first half as well as the central government's efforts to facilitate cross-border financing.

The SAFE predicted steady growth of external debt as China's economic fundamental remains solid.

It also promised better debt management and strengthened supervision of capital flows.

First Published: Fri, September 29 2017. 19:48 IST