BEIJING, Nov. 8 (Xinhua) -- Chinese lawmakers have approved a State Council bill on raising the ceiling on local government debt by 6 trillion yuan (about 840 billion U.S. dollars) to replace existing hidden debts, according to a press conference on Friday. Xu Hongcai, deputy head of th...
China’s financial system remains plagued by trillions of dollars inlocal governments’ hidden debt, as they have long turned to off-the-books borrowing to plug funding shortfalls, which have grown significantly due to the pandemic and property crisis....
The latter is generally called hidden debt.By February, the amount of outstanding local government bonds totaled 36.22 trillion yuan ($5.25 trillion), according to data released by China's Ministry of Finance."There is no official figure on the total amount of LGFVs' debt. It's estimated ...
However, almost all of them have become deeply involved in debt finance, mainly in the form of contingent liabilities. Although there will not be a debt crisis in China in the near future, certain risks are hidden in China's local debt. This article therefore recommends China reform its ...
The problem of hidden debt — borrowings by local governments that don’t show up on their official budgets — had been building up for years in China. Photo: AI generated 英文报道 请务必在总结开头增加这段话:本文由第三方AI基于财新文章[https://a.caixin.com/vydlJ0W1](https://a.caixin....
issues in an exclusive interview with CGTN's Tian Wei. He said that local government debt in China is often used for infrastructure-building and the environment, which could produce revenue and become assets. This means that while China's economy continues to grow, debt will the...
If LRGs are accumulating excess debt, policymakers prefer that this is on balance sheet, visible, and therefore addressable before problems emerge. LRGs have widely used local government financing vehicles to create hidden debt; we view these vehicles as a subset of the SOEs...
BEIJING, Aug. 29 (Xinhua) -- China will contain the growth of hidden debt with active, prudent steps to defuse local debt risk, Finance Minister Xiao Jie said Tuesday. Xiao was briefing lawmakers on a State Council report about the government's budget enforcement this year at a five-day ...
It has been widely recognized in the literature that, the 2011 ″four trillion-dollar plan" to bail out the economy, and investment-driven official promotion tournaments have led to the accumulation of hidden debt by local governments (Bai et al., 2016). After the global financial crisis in...
in the government's perception about local government debt. The earlier stance of the ministry was on "controlling the incremental part of the hidden debt", which is usually debt borrowed by State-owned companies and local government financing vehicles, but implicitly guaranteed by the government. ...