Debt issued by local government financing vehicles (LGFVs) in China is often used to fund infrastructure projects. Photo: Xinhua
Debt issued by local government financing vehicles (LGFVs) in China is often used to fund infrastructure projects. Photo: Xinhua

Shanghai, Guangdong debt pilot programmes aim to reduce China’s hidden local government liabilities

  • Shanghai and Guangdong will focus on better self-regulation to curb hidden debt risks, while also looking to convert some of the debt into regonisable debt
  • Debt issued by local government financing vehicles (LGFVs) have long been a major concern for the central government

Topic |   China economy
Debt issued by local government financing vehicles (LGFVs) in China is often used to fund infrastructure projects. Photo: Xinhua
Debt issued by local government financing vehicles (LGFVs) in China is often used to fund infrastructure projects. Photo: Xinhua
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