The debt problem is now becoming the trigger to the systemic financial risk in China, of which the corporate debt is the largest potential tipping point.

The research team at ANBOUND Consulting wishes to highlight that the central government has already affirmed deleveraging as one of the major tasks for 2016, against such backdrop, it is rather strange that during its recent briefing, the State Council Information office has suggested the government and the public to increase their debt ratio modestly, this suggestion, however, coincides with ANBOUND's views, where ANBOUND has suggested the government to increase the debt ratio for both household sector and government sector modestly.

Under the pressure of reality, this is now becoming a new policy option.