China’s outstanding external debt continued to grow in the second quarter, totalling to USD 1.56 trillion.
The debt settled at USD 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 external debt owed to foreign creditors results from short-term borrowing, while long and medium-term outstanding external debt 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.