2010-06-23 17:28

China should be alert to the size of its public debts, as their actual value equals almost 50 percent of the country's GDP although the nominal ratio is just around 20 percent, said Jia Kang, director of the Research Institute for Fiscal Science of the Ministry of Finance.

The public debts include debts from public sectors, treasury bonds, and latent local government borrowings, according to Jia.

He suggests that government regulate local government debts, as it may trigger a "regional crisis" when turns sour.

Jia also suggests that the government rein in the pace of borrowings.