Policy lender, China Development Bank, has agreed to provide a large amount of 10-year loans annually to help local government financing vehicles Photo: Alamy

China pours more money into cheap loans to help regions deal with debt pile and aid economy

  • China Development Bank is providing low-interest rate loans to help local government financing units roll over maturing debt, including loans
  • Local government financing vehicle debt is estimated to account for 34 per cent of gross domestic product, according to China International Capital Corporation
Topic |   China economy

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Policy lender, China Development Bank, has agreed to provide a large amount of 10-year loans annually to help local government financing vehicles Photo: Alamy
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Wu Xiaoqiu of Renimin University of China at the Boao Forum for Asia. Photo: boaoforum.org

China’s local government debt at ‘boiling point’ as Beijing seeks to boost growth, says renowned academic

  • Regional authorities have issued US$163.8 billion in debt since the start of 2019, four times that of year-earlier period
  • But China will not be centre of next crisis as the financial system is ‘healthy’, says Renmin University vice-president professor Wu Xiaoqiu
Topic |   China economy

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Wu Xiaoqiu of Renimin University of China at the Boao Forum for Asia. Photo: boaoforum.org
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