local government debt

China tightens controls on local government loans

The new guidelines are comprehensive but the need to sustain economic growth may put pressure on enforcement.
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Funding of Chinese local government projects is under scrutiny
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<div style="text-align: left;"> Funding of Chinese local government projects is under scrutiny </div>

China has tightened rules on bank lending to local government financing vehicles (LGFVs), in a bid to constrain their mounting debts. But the new leadership’s desire to showcase its capability to ensure economic growth suggests enforcement of the new rules is questionable.

¬ Haymarket Media Limited. All rights reserved.

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