China's debt has soared to two and a half times its economy, Standard Chartered estimates, highlighting the difficulties Beijing faces in balancing growth with the risk of bubbles forming in its economy.
Total financial credit has surged to 251 percent of gross domestic product from 147 percent at the end of 2008, the bank said.
"The economy will continue to leverage up, and the market will remain concerned," said Stephen Green, chief China economist at Standard Chartered.
Since the financial crisis of 2008, China has relied heavily on credit to spur its high growth rates, but the alarming pace of credit growth has triggered worries for investors, especially as rapid build-ups in debt have signaled the onset of financial crises in other economies.
As a result, policy makers in China have faced the difficult task of trying to slow economic growth to more sustainable levels without causing a hard landing scenario – when an economy rapidly shifts from growth to slow growth to no growth.