Some 700,000 local government financing vehicles are used by provincial and lower level governments to evade restrictions on borrowing. Photo: AFP
Some 700,000 local government financing vehicles are used by provincial and lower level governments to evade restrictions on borrowing. Photo: AFP

China upgrading local government financial monitoring system to rein in ‘hidden debt’

  • China is strengthening a national monitoring system that keeps tabs on some 700,000 local government financing vehicles
  • Beijing has launched a number of programmes to rein in excess local debt and risky bank lending in recent years

Some 700,000 local government financing vehicles are used by provincial and lower level governments to evade restrictions on borrowing. Photo: AFP
Some 700,000 local government financing vehicles are used by provincial and lower level governments to evade restrictions on borrowing. Photo: AFP
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