Watchdog warns of consumer debt

China must pay more attention to cutting its consumer leverage ratio due to rising risks in the financial sector from the rapid growth of household debt, according to the top banking watchdog.

The country has emphasized the need to cut corporate and government debt, but "we've noticed that the consumer leverage ratio also needs lowering", Guo Shuqing, chairman of the China Banking Regulatory Commission, said on Friday.

The term refers to the ratio of a household's total debt to its personal disposable income.