Reuters reports that central bank governor Yi Gang said China will strike a balance between stabilising economic growth and preventing risks, even as debt was allowed to temporarily rise this year to support the coronavirus-hit economy.

Yi told that he expected China's macro leverage ratio to stabilise next year as the economy expands, after the debt gauge rose in 2020.

"Monetary policy needs to guard the 'gates' of money supply, and properly smooth out fluctuations in the macro leverage ratio, and keep it on a reasonable track in the long run," Yi said.

The Institute for International Finance (IIF) said in July that China's debt-to-GDP ratio was on track to hit 335%, from nearly 318% in the first quarter.