Borrowing money for a car is also becoming more popular as consumers, particularly millennials, take advantage of very low interest rates.
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Since Chinese leaders turned on the credit taps in late 2008 to shield the country from the global recession, household borrowing has soared and pushed China's overall debt liabilities above 260 percent of gross domestic product – compared with about 140 percent before the crisis hit.Household debt has become the major driver of China's credit growth, expanding by an average of 19 percent a year since 2011, said Chen Long, an economist at Gavekal Dragonomics.If it continues to grow at this pace, household debt would reach roughly 66 trillion yuan by 2020 – more than double the current level – and potentially 70 percent of GDP versus 30 percent back in 2013 .Wang Yuchen, 28, borrowed 3 million yuan from the bank in August to buy a 4.75 million yuan apartment in Beijing.Auto financing has been soaring by 40 percent a year, and high-speed growth in the sector is expected to continue, according to Ron Zheng, an automotive expert at Roland Berger consultancy.
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