Direct risks associated with China’s household debt are low for the sovereign rating (A+/Negative), but some emerging pockets of stress could affect banks, securitised assets and other lenders, says Fitch Ratings. Household debt growth in China has slowed significantly, with the household debt/disposable income ratio rising slightly to 115% in 2023, from 112% in 2022, and remaining moderate on a global scale. The trajectory of household debt mirrors trends in the country’s housing market and, to a lesser extent, is reflected in tepid consumer loan demand. We believe China’s economic growth could slow if households ... (full story)