China is trying to reduce debt among local government financing vehicles (LGFVs), which were created to skirt restrictions on local government borrowing. Photo: AFP
Explainer |
China’s hidden debt: how much is it and what is Beijing doing to curb the financial risk?
- Debt levels among China’s local government financing vehicles (LGFVs) are an issue of growing concern for authorities
- Beijing has begun tightening bond issuance criteria for LGFVs and ordered local governments to clear existing credit by 2028
China is trying to reduce debt among local government financing vehicles (LGFVs), which were created to skirt restrictions on local government borrowing. Photo: AFP
