De-leverage refers to enterprises or individuals reducing the use of financial leverage, that is, returning the original "borrowed" money through various means (or tools). Generally speaking, leverage is debt (that is, borrowing money to do things). De-leveraging is self-evident. During the economic boom, the financial market was flooded with a large number of complex and highly leveraged investment tools. The "deleveraging" of a single company or institution will not have much impact on the market and economy, but if the whole market enters this process, the impact is obviously extraordinary. De-leveraging is a necessary measure to prevent financial crisis.

For example:

After years of hard work, Lao Zhang finally realized his wish to buy a house. The total house price is 6,543,800+0,000 yuan, Lao Zhang pays 300,000 yuan in down payment and the remaining 700,000 yuan in bank loans. Among them, 700,000 yuan is Lao Zhang's debt, so Lao Zhang used 300,000 yuan to move a house of 6,543,800 yuan, which is called leverage. Note: Borrowing money to expand assets means adding leverage, and paying back money to reduce liabilities means deleveraging.

How to deleverage?

First, the central bank tightened credit (no more loans)

Second, reduce debt (quick repayment after loan)

In short, deleveraging requires steady operation and cannot be rushed.