HAMBURG (Reuters) - Chinese enterprises are too reliant on bank finance because of their lack of capital market access, its vice finance minister said on Thursday, promising to continue pushing the financial sector to deleverage while developing alternative sources of finance.
Speaking on the eve of the G20 summit in Hamburg, Zhu Guangyao also said China was closely monitoring the global spillover from the U.S. Federal Reserve's ongoing normalisation of interest rates, promising continued "sound cooperation" with the monetary authority.
"If you look at the debt structure of China, neither household nor local government debt has exceeded 40 percent, but there are challenges in the debt of enterprises," he said. "That is why we need to push the development of a multi-tiered capital market. But we are confident there will be no systemic risks."
Reporting By Thomas Escritt; Editing by Kevin Liffey