Local government debt

Developers’ caution in buying land could threaten local government finances

Even China Overseas Land & Investment, the country’s biggest listed developer by market cap, is turning cautious. Photo: Peggy Sito

"Caution" is a word commonly used by mainland developers when talking about their land acquisition plans this year. That bodes ill for some local governments that are under pressure to refinance.

Wednesday, 2 April, 2014, 2:50am

Local government financing needs revamp to avoid risk of excessive debt, analysts say

Cash-strapped local governments often have difficulty financing infrastructure projects. Photo: Xinhua

The fast growth in the mainland's local government debt has highlighted the urgency of a revamp of the country's seriously imbalanced fiscal system, under which the central government should shoulder more of the load, to ease the burden on provincial, city, county and township authorities, analysts said.

25 Jan 2014 - 5:07am 1 comment

Record land sales revenues leave local governments worried about further property curbs

The influx of people into Beijing creates an annual demand of 120,000 homes, CBRE estimates. Photo: Reuters

Record revenues from land sales last year were a mixed blessing for heavily indebted local governments on the mainland.

They worry the central government will be provoked to launch a fresh round of curbs to prevent overheating of the property market.

10 Jan 2014 - 4:02pm