Yongcheng Coal’s bond default has sparked broader concern over whether local governments will be able to bail out the state firms they own. Photo: AFP
Yongcheng Coal’s bond default has sparked broader concern over whether local governments will be able to bail out the state firms they own. Photo: AFP
Zhou Xin
Opinion

Opinion

Zhou Xin

China’s bond defaults may lead to poor places becoming poorer and rich places richer

  • Local governments in underdeveloped parts of China could find it harder, or at least more expensive, to borrow money
  • Supreme oversight body of China’s financial risks has urged local governments to honour debts, suggesting that Beijing has no intention of bailing them out

Yongcheng Coal’s bond default has sparked broader concern over whether local governments will be able to bail out the state firms they own. Photo: AFP
Yongcheng Coal’s bond default has sparked broader concern over whether local governments will be able to bail out the state firms they own. Photo: AFP
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