Clearing local government debt, much of which has been raised for infrastructure projects, is a priority for China’s central government. Photo: Xinhua Clearing local government debt, much of which has been raised for infrastructure projects, is a priority for China’s central government. Photo: Xinhua
Clearing local government debt, much of which has been raised for infrastructure projects, is a priority for China’s central government. Photo: Xinhua

China’s ‘problematic’ local debt in the spotlight as it begins scaling back coronavirus stimulus

  • With economic momentum stabilising in China, local government debt and corporate bond defaults are emerging as the prime financial risks
  • But experts say Beijing faces a challenge in balancing debt reduction in cash-strapped regions while maintaining post-coronavirus growth

Topic |   Banking & Finance
Clearing local government debt, much of which has been raised for infrastructure projects, is a priority for China’s central government. Photo: Xinhua Clearing local government debt, much of which has been raised for infrastructure projects, is a priority for China’s central government. Photo: Xinhua
Clearing local government debt, much of which has been raised for infrastructure projects, is a priority for China’s central government. Photo: Xinhua
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