China has stepped up its debt reduction campaign after borrowing for infrastructure and other public projects ballooned after the coronavirus pandemic. Photo: Xinhua
China’s debt clamp down stokes risk of first local government credit defaults
Beijing signalled last month it may allow local government financing vehicles (LGFVs) to default or undergo restructuring if they are unable to repay debt
Since then, there have been signs that some LGFVs have been slowing the issuance of new debt because of tougher requirements from stock exchanges
