Digital financial inclusion and household debt in China

This study investigates the impact of digital financial inclusion (DFI) on household debt in China. The development of DFI positively affects the total household debt, especially for short-term debt and long-term debt from banks. This indicates that DFI promotes more Chinese households to borrow through formal channels. Furthermore, the development of DFI stimulates more loans from Chinese urban households. Our findings provide useful insights into the important issue of Chinese household debt risk.