Investors are growing jittery about the risk of default among local governments, which borrowed huge sums for infrastructure projects via local government financing vehicles after the 2008 global financial crisis. Photo: Xinhua Investors are growing jittery about the risk of default among local governments, which borrowed huge sums for infrastructure projects via local government financing vehicles after the 2008 global financial crisis. Photo: Xinhua
Investors are growing jittery about the risk of default among local governments, which borrowed huge sums for infrastructure projects via local government financing vehicles after the 2008 global financial crisis. Photo: Xinhua

China’s debt-laden local governments struggle to secure refinancing as investors grow wary of default risks

  • Bond issuance by local government financing vehicles (LGFVs) has slowed amid growing investor concern about defaults
  • More local governments have been closing poorly-performing LGFVs and consolidating profitable ones, analysts say

Topic |   Dealing with debt
Investors are growing jittery about the risk of default among local governments, which borrowed huge sums for infrastructure projects via local government financing vehicles after the 2008 global financial crisis. Photo: Xinhua Investors are growing jittery about the risk of default among local governments, which borrowed huge sums for infrastructure projects via local government financing vehicles after the 2008 global financial crisis. Photo: Xinhua
Investors are growing jittery about the risk of default among local governments, which borrowed huge sums for infrastructure projects via local government financing vehicles after the 2008 global financial crisis. Photo: Xinhua
READ FULL ARTICLE