Even China's Party Mouthpiece Is Warning About Debt

China should put deleveraging ahead of short-term growth and drop the "fantasy" of stimulating the economy through monetary easing, the person was cited as saying. The nation needs to be proactive in dealing with rising bad loans, rather than delaying or hiding them, the report said.

...

"A tree cannot grow up to the sky -- high leverage will definitely lead to high risks," the person was cited as saying. "Any mishandling will lead to systemic financial risks, negative economic growth, or even have households' savings evaporate. That's deadly."