China is trying to clamp down on off-balance sheet borrowing, which has fueled local governments spending on infrastructure projects in the past. Photo: Xinhua
China debt: local financing vehicles scale back funding amid Beijing’s risk reduction drive
- Suzhou city in east China’s Jiangsu province has announced 18 locally owned enterprises will no longer be involved in government fundraising
- The announcement is in response to a campaign from Beijing to curb implicit liabilities amid fears of financial contagion in the world’s No 2 economy
China is trying to clamp down on off-balance sheet borrowing, which has fueled local governments spending on infrastructure projects in the past. Photo: Xinhua
