China sees steady increase in external debt

BEIJING — China's outstanding external debt continued to grow in the second quarter as the economy firms up, the country's foreign exchange regulator said Friday.

The debt settled at $1.56 trillion at the end of June, up 8.7 percent from a quarter earlier, the State Administration of Foreign Exchange (SAFE) said in a statement.

The majority of China's external debt owed to foreign creditors results from short-term borrowing, while long- and medium-term outstanding external debt accounted for 36 percent, SAFE data showed.

The SAFE attributed the growth of external debt to steady economic growth and stable foreign trade in the first half as well as the central government's efforts to facilitate cross-border financing.

The SAFE predicted steady growth of external debt as China's economic fundamental remains solid.

It also promised better debt management and strengthened supervision of capital flow.