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