https://www.scmp.com/rss/516393/feed The latest news and features on China's debt, both local and national. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Ralph Jennings Ralph Jennings China and the United States drove a rapid accumulation of global debt in the first quarter of 2026, a trend that could spread amid war in the Middle East and mounting geopolitical tensions, a major finance industry body said. Global debt hit a record high of nearly US$353 trillion in the first quarter, according to the Institute of International Finance (IIF), with a US$4.4 trillion rise from January to March, driven largely by government borrowing and marking the fastest increase since the... https://www.scmp.com/economy/global-economy/article/3352794/china-us-drive-global-debt-record-353-trillion-iran-war-adds-pressure-report?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3352794/china-us-drive-global-debt-record-353-trillion-iran-war-adds-pressure-report?utm_source=rss_feed Thu, 07 May 2026 12:08:41 +0000 He Huifeng He Huifeng Beijing is intensifying its enforcement against tax evasion, extending its reach into consumption taxes, which have been positioned as a critical source of stabilising local government finances that have been hit hard by the nation’s prolonged property crisis. Earlier this month, the State Taxation Administration (STA) released details of eight tax-violation cases involving sectors such as gold jewellery, alcoholic beverages and refined oil. The enforcement actions spanned multiple regions,... https://www.scmp.com/economy/china-economy/article/3351320/china-ramps-hunt-tax-evaders-frames-consumption-levies-fiscal-lifelines?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3351320/china-ramps-hunt-tax-evaders-frames-consumption-levies-fiscal-lifelines?utm_source=rss_feed Fri, 24 Apr 2026 14:00:14 +0000 Mia Nurmamat Mia Nurmamat China’s central government has publicly criticised several local authorities – including a relatively poor county in Sichuan province – for “imprudent” fiscal spending for the first time in an ongoing campaign urging officials to adopt a “correct view” of political performance. Among those named was a county in the southwestern province of Sichuan once ranked among the country’s poorest. Zhaojue county was said to have used transfer payments from higher-level governments to fund three tourism... https://www.scmp.com/economy/china-economy/article/3350133/sour-note-china-criticises-local-governments-imprudent-spending?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3350133/sour-note-china-criticises-local-governments-imprudent-spending?utm_source=rss_feed Wed, 15 Apr 2026 08:00:24 +0000 He Huifeng He Huifeng When Su Shaojun launched an audacious plan to build a life-size replica of the Titanic, he felt he was on to a sure-fire winner. After all, James Cameron’s iconic 1997 film had been a worldwide hit – including in China, where it had grossed over US$200 million. At a press event to unveil the project in 2014, Su invited the actor Bernard Hill – who played the captain of the Titanic in the film – to appear alongside him as he told the assembled reporters in Hong Kong that his company aimed to... https://www.scmp.com/economy/china-economy/article/3349667/how-chinas-fake-titanic-sank-stone-and-became-symbol-local-excess?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3349667/how-chinas-fake-titanic-sank-stone-and-became-symbol-local-excess?utm_source=rss_feed Sun, 12 Apr 2026 08:00:11 +0000 Xinyi Wu Xinyi Wu When a friend received a text message from the mainland Chinese tax authorities asking her to ensure that all her declared income – including income from abroad – was accurate, Fan, a finance professional who asked that her full name not be used, was shocked. Her friend was now coordinating with the authorities to settle the outstanding taxes on her overseas trading, she said, adding that “there is no alternative but to comply” with such texts and that the incident had left her on guard about... https://www.scmp.com/economy/china-economy/article/3349257/how-china-tax-crackdown-undeclared-overseas-income-targeting-retail-investors?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3349257/how-china-tax-crackdown-undeclared-overseas-income-targeting-retail-investors?utm_source=rss_feed Wed, 08 Apr 2026 04:00:09 +0000 Michael Han Michael Han When it comes to Chinese policy, what section of the work report it ends up in can say more than the policy itself. At the National People’s Congress, the most significant signal was not headline-grabbing stimulus but a quiet re-categorisation. Property policies have yet again been relegated to the risk prevention section in the government work report. This shift confirms that Beijing has fundamentally reappraised the sector. For global investors, the absence of a property stimulus bazooka was a... https://www.scmp.com/opinion/china-opinion/article/3347753/chinas-property-pivot-growth-engine-protected-household-asset?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3347753/chinas-property-pivot-growth-engine-protected-household-asset?utm_source=rss_feed Sun, 29 Mar 2026 01:30:09 +0000 Ralph Jennings Ralph Jennings About two out of every five professionals in China expect no pay rise this year after more than half missed out on one last year, with both figures higher than the Asian average, according to survey data gathered by a recruiting firm – a trend suggesting further pessimism among an already dissatisfied workforce. London-based recruitment firm Hays found that 44 per cent of professionals in China – the highest share anywhere in Asia – anticipate no salary increase in 2026. Six per cent expect a... https://www.scmp.com/economy/china-economy/article/3347176/survey-shows-chinas-professionals-have-high-expectations-low-pay?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347176/survey-shows-chinas-professionals-have-high-expectations-low-pay?utm_source=rss_feed Thu, 19 Mar 2026 15:00:10 +0000 Ji Siqi Ji Siqi The full implementation of taxation reforms pledged in China’s new five-year plan would substantially ease the fiscal strains on local governments, a leading tax policy expert said, while adding that it would not alter the central government’s dominant role in the country’s fiscal landscape. As a unitary state, China’s systematic advantage lay in strong central government finance that could coordinate fiscal resources in a unified manner and redistribute them through transfer payments, in... https://www.scmp.com/economy/china-economy/article/3346372/fiscal-family-adviser-says-chinas-tax-flows-should-resemble-parental-ties?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3346372/fiscal-family-adviser-says-chinas-tax-flows-should-resemble-parental-ties?utm_source=rss_feed Fri, 13 Mar 2026 03:00:10 +0000 Fan Hou Fan Hou To see every province-level region’s growth target, view this Quick Digest. https://www.scmp.com/plus/economy/china-economy/article/3345931/two-sessions-2026?utm_source=rss_feed https://www.scmp.com/plus/economy/china-economy/article/3345931/two-sessions-2026?utm_source=rss_feed Mon, 09 Mar 2026 05:16:08 +0000 Ji Siqi Ji Siqi With local governments in China struggling to replenish their treasuries while facing growing public service obligations, Beijing is setting its sights on securing more tax revenue as a major reform goal for 2026 and the four years beyond. Compared with the previous five-year plan period’s emphasis on “tax and fee cuts”, the language in the draft of the full 15th five-year plan – released on Thursday – emphasised “maintaining a reasonable macro tax burden”. The document also pledged to... https://www.scmp.com/economy/china-economy/article/3345619/chinas-new-5-year-plan-targets-tax-reform-local-governments-face-fiscal-strain?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345619/chinas-new-5-year-plan-targets-tax-reform-local-governments-face-fiscal-strain?utm_source=rss_feed Fri, 06 Mar 2026 03:00:13 +0000 Carol Yang Carol Yang As the United States grapples with mounting debt, China is doubling down on efforts to clean up its own balance sheet, vowing to tackle risks with “iron discipline”. The pledge came as the world’s second-largest economy weathers a years-long real estate slump and cooling domestic demand. Beijing faces growing pressure to balance short-term growth targets with longer-term deleveraging, as it seeks to transition to a more sustainable economy. In the government work report delivered on Thursday to... https://www.scmp.com/economy/china-economy/article/3345587/china-pledges-iron-discipline-tackle-debt-risks-us-borrowing-under-trump-surges?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345587/china-pledges-iron-discipline-tackle-debt-risks-us-borrowing-under-trump-surges?utm_source=rss_feed Thu, 05 Mar 2026 11:00:11 +0000 Frank Chen Frank Chen Ahead of China’s annual legislative meetings – typically a window into Beijing’s top-level policy agenda – this is the second entry in a series examining the complex economic recalibration driving China’s growth philosophy and its wide-ranging implications for local governments, financial investors and private enterprises. Beijing’s campaign to purge the bureaucracy of a growth-at-all-costs mindset has caught some local officials off guard, triggering a mix of confusion and contradictory... https://www.scmp.com/economy/china-economy/article/3344887/chinas-pivot-gdp-obsession-sparks-cadre-confusion-testing-local-governance?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344887/chinas-pivot-gdp-obsession-sparks-cadre-confusion-testing-local-governance?utm_source=rss_feed Sat, 28 Feb 2026 02:00:49 +0000 Carol Yang Carol Yang China’s leadership has stressed the need for a more proactive macroeconomic stance to support the country’s new five-year plan, ahead of next week’s annual “two sessions” – one of the country’s most important political events. Chaired by President Xi Jinping, the Politburo – a major decision-making body of the ruling Communist Party – met on Friday and set a decisive tone for policy direction, highlighting the need to expand domestic demand and strengthen new growth drivers. In an official... https://www.scmp.com/economy/china-economy/article/3344917/chinas-politburo-signals-decisive-macroeconomic-direction-ahead-two-sessions?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344917/chinas-politburo-signals-decisive-macroeconomic-direction-ahead-two-sessions?utm_source=rss_feed Fri, 27 Feb 2026 12:30:14 +0000 Mia Nurmamat Mia Nurmamat Global debt climbed to a record high in 2025, rising at the fastest pace since the pandemic, with China and the United States accounting for a large share of the increase, according to a new report. Total global debt surged to US$348 trillion last year, with nearly US$29 trillion of new debt added over the year, the Institute of International Finance (IIF) said. Government borrowing accounted for more than US$10 trillion of the increase, with the United States, China and the euro zone together... https://www.scmp.com/economy/china-economy/article/3344903/global-debt-soars-us29-trillion-us-china-drive-rapid-build-report?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344903/global-debt-soars-us29-trillion-us-china-drive-rapid-build-report?utm_source=rss_feed Fri, 27 Feb 2026 12:00:17 +0000 Frank Chen Frank Chen Ahead of China’s annual legislative meetings – typically a window into Beijing’s top-level policy agenda – this is the first entry in a series examining the complex economic recalibration driving China’s growth philosophy and its wide-ranging implications for local governments, financial investors and private enterprises. Beijing’s forceful campaign to instil a “correct” understanding of tenure performance among party cadres may signal Chinese leaders’ determination to downplay headline growth... https://www.scmp.com/economy/china-economy/article/3344723/china-shifts-cadre-appraisal-metrics-away-pure-gdp-growth-resetting-mindsets?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344723/china-shifts-cadre-appraisal-metrics-away-pure-gdp-growth-resetting-mindsets?utm_source=rss_feed Thu, 26 Feb 2026 22:00:09 +0000 Ralph Jennings Ralph Jennings Fiscal strains are forcing Chinese provinces to slash their budget-revenue expectations for 2026 due to the knock-on effects of a five-year property market slump, and analysts cite the shift as a warning sign that intense debt pressures continue to drag down the nation’s economic growth outlook. Major provinces are budgeting for 2 to 3 per cent growth this year in general public operating revenue, broadly in line with last year but below broader economic growth targets, Fitch Ratings said in a... https://www.scmp.com/economy/china-economy/article/3343499/chinese-provinces-slash-revenue-outlook-analysts-warn-debt-control?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3343499/chinese-provinces-slash-revenue-outlook-analysts-warn-debt-control?utm_source=rss_feed Fri, 13 Feb 2026 15:00:08 +0000 Frank Chen Frank Chen Chinese households have accelerated deleveraging – cutting debt relative to gross domestic product – at the fastest pace in years, a shift that could weigh on the consumer spending that Beijing needs to sustain growth in the world’s second-largest economy. The household debt-to-GDP ratio fell by 2 percentage points, from 61.4 per cent in 2024 to 59.4 per cent at the end of 2025, according to data released on Monday by the National Institution for Finance and Development (NIFD), a Beijing-based... https://www.scmp.com/economy/china-economy/article/3341435/chinas-consumer-spending-push-faces-major-challenge-debt-averse-households?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3341435/chinas-consumer-spending-push-faces-major-challenge-debt-averse-households?utm_source=rss_feed Tue, 27 Jan 2026 13:00:21 +0000 Mia Nurmamat Mia Nurmamat China is tightening approvals for intercity railways and urban metro projects – long-standing pillars of fixed-asset investment – as policymakers pay closer attention to debt risks while shifting the growth model towards consumption. The move comes as President Xi Jinping has specifically flagged operational strains at some high-speed rail stations and subway lines – a sign that the old growth driver may be further curtailed in the coming years. According to an online statement on Sunday by the... https://www.scmp.com/economy/china-economy/article/3341412/china-tightens-rail-approvals-xi-warns-overbuilding-waste-and-operational-trouble?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3341412/china-tightens-rail-approvals-xi-warns-overbuilding-waste-and-operational-trouble?utm_source=rss_feed Tue, 27 Jan 2026 10:00:10 +0000 Xinyi Wu Xinyi Wu China trimmed its holdings of US Treasuries in November to the lowest level since 2008, diverging from a global trend that saw total foreign ownership of the debt instruments hit a record high. Analysts say the prospect of a politicised Federal Reserve chairmanship under Donald Trump’s presidency has deepened Beijing’s concerns over its exposure to American debt, with more cuts expected. Beijing’s stockpile fell to US$682.6 billion in November, down from US$688.7 billion in October, according to... https://www.scmp.com/economy/global-economy/article/3340164/china-dumps-more-us-debt-buys-other-assets-trump-targets-powell?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3340164/china-dumps-more-us-debt-buys-other-assets-trump-targets-powell?utm_source=rss_feed Fri, 16 Jan 2026 13:00:09 +0000 Sylvia Ma Sylvia Ma China’s central bank has reiterated its commitment to a “moderately loose” policy stance in 2026, pledging stronger countercyclical and cross-cycle adjustments and signalling flexible and efficient use of reserve requirement ratio (RRR) cuts and interest rate reductions to support a strong start to the 15th five-year plan. At a work conference outlining priorities for the coming year, the People’s Bank of China also highlighted goals including a reasonable recovery in prices, mitigating... https://www.scmp.com/economy/china-economy/article/3339018/chinas-central-bank-signals-reserve-ratio-interest-rate-cuts-2026?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339018/chinas-central-bank-signals-reserve-ratio-interest-rate-cuts-2026?utm_source=rss_feed Wed, 07 Jan 2026 08:30:27 +0000 Xinyi Wu Xinyi Wu China is tapping the brakes on some subway expansions, including in certain affluent cities – a decision that analysts said reflects a shift from the debt-fuelled infrastructure boom of the past to a new era of fiscal discipline and investment efficiency. Rich eastern hubs such as Ningbo and Suzhou are among those facing regulatory roadblocks in securing Beijing’s approval for new lines as policymakers scrutinise loss-making projects. In an online response to public inquiries, the Ningbo... https://www.scmp.com/economy/china-economy/article/3337825/chinese-cities-face-subway-delays-beijing-targets-wasteful-spending-high-debt-levels?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3337825/chinese-cities-face-subway-delays-beijing-targets-wasteful-spending-high-debt-levels?utm_source=rss_feed Mon, 29 Dec 2025 02:00:08 +0000 Carol Yang,Ji Siqi Carol Yang,Ji Siqi China’s central bank has unveiled a credit-rehabilitation policy to help individuals who defaulted on small loans rebuild their financial standing – part of a broader push to bolster the economy and repair household balance sheets. The People’s Bank of China said the measure targets borrowers with a single instance of overdue debt incurred between 2020 and 2025 and not exceeding 10,000 yuan (US$1,421). If the debt is fully repaid by March 31, the default record will be hidden from credit... https://www.scmp.com/economy/china-economy/article/3337354/china-hide-bad-debt-records-pandemic-hit-borrowers-who-repay-small-loans?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3337354/china-hide-bad-debt-records-pandemic-hit-borrowers-who-repay-small-loans?utm_source=rss_feed Mon, 22 Dec 2025 13:00:28 +0000 Meredith Chen Meredith Chen China has set a deadline for local governments to settle outstanding payments owed to companies, calling it essential for improving the country’s business environment amid an economic slowdown. All arrears below 500,000 yuan (US$70,870) must be cleared by the end of the year, said Xiao Weiming, deputy secretary general of the National Development and Reform Commission, the country’s top economic planner. “The biggest step in improving the business environment right now is clearing the... https://www.scmp.com/news/china/politics/article/3336395/china-orders-local-governments-settle-bills-companies-year-end?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3336395/china-orders-local-governments-settle-bills-companies-year-end?utm_source=rss_feed Sun, 14 Dec 2025 11:49:59 +0000 Carol Yang Carol Yang China’s economy is projected to grow by 5 per cent in 2025 before slowing to 4.5 per cent in 2026, the International Monetary Fund said on Wednesday, offering a slightly more upbeat outlook underscoring its view of the country’s resilience despite persistent trade frictions. The annual assessment released on Wednesday showed an upwards revision of 0.2 and 0.3 percentage points from the IMF’s October forecast, as the world’s second-largest economy rolled out stimulus measures and faced... https://www.scmp.com/economy/china-economy/article/3335880/chinas-2025-growth-forecast-raised-5-imf-citing-resilience?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3335880/chinas-2025-growth-forecast-raised-5-imf-citing-resilience?utm_source=rss_feed Wed, 10 Dec 2025 07:32:46 +0000 Sylvia Ma Sylvia Ma As the Chinese leadership prepares to set the economic agenda for the year ahead, analysts expect Beijing to mostly maintain this year’s policy tone but say it could tolerate a slightly lower growth target. Chinese leaders will hold a closed-door meeting to discuss next year’s main policy goals during the central economic work conference, which usually takes place in early or mid-December. “To address the demand slump, we expect Beijing to maintain its proactive fiscal policy stance, with a... https://www.scmp.com/economy/china-economy/article/3335356/china-keep-economic-strategy-2026-slightly-lower-gdp-target-possible-analysts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3335356/china-keep-economic-strategy-2026-slightly-lower-gdp-target-possible-analysts?utm_source=rss_feed Fri, 05 Dec 2025 11:15:13 +0000 Bloomberg Bloomberg China’s crackdown on borrowing by local governments is forcing state-run entities in even some of the wealthiest provinces to tap costly credit from non-bank lenders, a stopgap that is increasing risk in an opaque corner of the financial system. The borrowing marks a return of China’s shadow-banking market, which is more loosely regulated than traditional lenders and had been reined in over the past few years in a bid to reduce risk. Since September, industrial investment arms and financing... https://www.scmp.com/business/banking-finance/article/3335311/chinas-risky-shadow-banks-back-spotlight-after-beijings-debt-crackdown?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3335311/chinas-risky-shadow-banks-back-spotlight-after-beijings-debt-crackdown?utm_source=rss_feed Fri, 05 Dec 2025 06:57:34 +0000 Mia Nurmamat Mia Nurmamat China’s finance minister has called for a more proactive fiscal policy to boost domestic demand, strengthen industrial security and advance technological self-reliance while mitigating debt risks, as Beijing prepares for one of its most important economic planning meetings of the year. Finance Minister Lan Foan outlined the country’s top fiscal priorities on Tuesday in an editorial published in the People’s Daily, the ruling Communist Party’s flagship newspaper. He stressed the need to support... https://www.scmp.com/economy/policy/article/3334924/chinas-finance-minister-calls-more-fiscal-firepower-beijing-weighs-2026-agenda?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3334924/chinas-finance-minister-calls-more-fiscal-firepower-beijing-weighs-2026-agenda?utm_source=rss_feed Tue, 02 Dec 2025 12:30:18 +0000 Zhang Shidong Zhang Shidong China’s bond market is set to gain further momentum, buoyed by the central bank’s resumption of government debt purchases, as softer economic data and downward pressure on growth necessitate further policy easing, according to analysts. Huayuan Securities forecast that the upward trend was likely to drive the yield on China’s benchmark 10-year sovereign bond down to 1.65 per cent within this year. Southwest Securities predicted a drop to 1.7 per cent. The yield currently stands at 1.808 per... https://www.scmp.com/business/china-business/article/3333369/chinas-bond-market-gains-central-bank-resumes-debt-purchases-amid-growth-concerns?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3333369/chinas-bond-market-gains-central-bank-resumes-debt-purchases-amid-growth-concerns?utm_source=rss_feed Wed, 19 Nov 2025 23:30:10 +0000 Zhang Lin Zhang Lin China’s Ministry of Finance recently established a new debt management department, unifying the management of government debt quotas, issuance and redemption. What appears to be a simple adjustment reflects a profound shift in China’s economic governance. To counter the impact of the 2008 subprime mortgage crisis, China launched a 4 trillion yuan (US$563 billion) stimulus plan, shifting its growth model from exports to investment. From 2009 to 2014, growth was mainly driven by infrastructure... https://www.scmp.com/opinion/china-opinion/article/3332425/obscure-new-department-heralds-shift-chinas-debt-cycle?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3332425/obscure-new-department-heralds-shift-chinas-debt-cycle?utm_source=rss_feed Sun, 16 Nov 2025 08:30:11 +0000 Mia Nurmamat Mia Nurmamat Local Chinese authorities have stepped up efforts to collect taxes from citizens with unreported overseas income, urging them to remain compliant as the country refines its taxation system and local governments seek to broaden revenue streams. At least six tax authorities – including city-level administrations in Shenzhen, Beijing and Xiamen, along with provincial-level bureaus in Guangdong, Fujian and Sichuan – said they had used big data analysis to identify individuals who failed to report... https://www.scmp.com/economy/china-economy/article/3332633/china-tightens-tax-scrutiny-citizens-overseas-income-amid-fiscal-pressures?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3332633/china-tightens-tax-scrutiny-citizens-overseas-income-amid-fiscal-pressures?utm_source=rss_feed Thu, 13 Nov 2025 09:00:26 +0000 Ji Siqi Ji Siqi As Beijing vows a stronger fiscal role to buttress an economy facing mounting risks, policymakers face a core dilemma in optimising China’s national development blueprint for the next half-decade: how to raise sufficient tax revenue without imposing an excessive burden on businesses. A detailed explanatory guide on China’s 15th five-year plan proposals for 2026 to 2030 said the period presents “new and higher demands for enhancing fiscal sustainability”, and the book warned of revenue growth... https://www.scmp.com/economy/china-economy/article/3332512/chinas-fiscal-pivot-tax-reform-5-year-plan-protect-budgets-without-crushing-firms?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3332512/chinas-fiscal-pivot-tax-reform-5-year-plan-protect-budgets-without-crushing-firms?utm_source=rss_feed Wed, 12 Nov 2025 12:00:10 +0000 Ji Siqi Ji Siqi China’s finance ministry has set up a dedicated department for managing government debt, with Finance Minister Lan Foan calling for “ironclad discipline” to prevent off-balance-sheet borrowing amid Beijing’s ongoing campaign to defuse local government debt risks. The new debt management department is now listed on the Ministry of Finance’s official website. Its director is Li Dawei, who was previously with the budget department and also led a ministry-affiliated government debt research and... https://www.scmp.com/economy/china-economy/article/3331485/china-sets-new-department-spearhead-government-debt-clean-drive?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3331485/china-sets-new-department-spearhead-government-debt-clean-drive?utm_source=rss_feed Tue, 04 Nov 2025 11:00:25 +0000 Luna Sun Luna Sun Few areas of China reflect the country’s decades-long economic transformation more vividly than its cities. Rapid development has turned villages into dense urban landscapes and already sizeable metro areas into some of the world’s largest population centres. As the rate of urbanisation slows and the country transitions into a new economic era, we explore how select Chinese cities are navigating the change. Read the rest of our series here. In a remote corner of China’s southwestern Guizhou... https://www.scmp.com/economy/china-economy/article/3330729/unforgivable-chinese-county-still-living-shadow-wild-spending-binge?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3330729/unforgivable-chinese-county-still-living-shadow-wild-spending-binge?utm_source=rss_feed Wed, 29 Oct 2025 22:00:11 +0000 Xinyi Wu Xinyi Wu As China works to defuse its debt risks, and with unchained US borrowing rocketing skyward, Ray Dalio finds himself at the centre of an important conversation in Beijing – advising top officials as they face a delicate path ahead. Chinese officials rolled out the red carpet this week for the billionaire investor and founder of Bridgewater Associates – one of the world’s largest hedge funds – as his words of caution on the risks facing major global economies appear to be increasingly resonating... https://www.scmp.com/economy/china-economy/article/3326700/china-ray-dalio-discusses-global-debt-issues-beijing-seeks-his-counsel?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3326700/china-ray-dalio-discusses-global-debt-issues-beijing-seeks-his-counsel?utm_source=rss_feed Wed, 24 Sep 2025 11:00:10 +0000 Bloomberg Bloomberg Overseas funds offloaded Chinese sovereign bonds in August, cutting holdings to the lowest level in almost five years and piling pressure on a debt market already reeling from a shift by investors into stocks. Holdings by foreign institutions fell for a third straight month in August to 2.01 trillion yuan (US$282 billion), the lowest level since January 2021, according to Chinabond data. That represented 5.2 per cent of the total outstanding amount of Chinese sovereign debt as of the end of... https://www.scmp.com/business/markets/article/3326348/global-funds-slash-holdings-chinese-bonds-lowest-levels-2021?utm_source=rss_feed https://www.scmp.com/business/markets/article/3326348/global-funds-slash-holdings-chinese-bonds-lowest-levels-2021?utm_source=rss_feed Mon, 22 Sep 2025 04:33:38 +0000 Sylvia Ma Sylvia Ma Concerns over China’s local-level debt have long loomed large in international discourse, with a mountain of “hidden” debt viewed as a “ticking time bomb” that threatens to trigger a cascade of defaults while posing a risk to financial stability. But some experts now contend that, after a sweeping debt-restructuring campaign, the outlook for China is shifting. And they say that, by comparison, the debt challenges facing the United States are causing considerable alarm. “After years of effort,... https://www.scmp.com/economy/china-economy/article/3321048/china-defuses-its-time-bomb-debt-us-hears-ticking-intensify?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321048/china-defuses-its-time-bomb-debt-us-hears-ticking-intensify?utm_source=rss_feed Thu, 07 Aug 2025 06:01:14 +0000 Alice Li Alice Li China’s debt relief campaign for local governments, launched last year, has delivered its first major success story after Inner Mongolia exited the central government’s high-risk list. The autonomous region was among 12 province-level jurisdictions flagged by Beijing for risky debt levels, with its exit revealed in a local budget review discussed internally in late July but only released to the public earlier this week. “[We must] consolidate the progress made in exiting the list of key... https://www.scmp.com/economy/china-economy/article/3320917/chinas-campaign-ease-local-government-debt-scores-first-big-win-inner-mongolia?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320917/chinas-campaign-ease-local-government-debt-scores-first-big-win-inner-mongolia?utm_source=rss_feed Wed, 06 Aug 2025 06:16:04 +0000 Carol Yang Carol Yang After a construction boom spanning nearly two decades, China’s high-speed rail (HSR) network has made record-breaking strides. But to ensure long-term sustainability, analysts said the government needs to address challenges around commercial profitability and mounting debt. The warnings came ahead of the next five-year plan, covering the years 2026-2030, in which policymakers will decide whether to take on more debt to expand the 48,000-kilometre network – already the world’s largest, surpassing... https://www.scmp.com/economy/china-economy/article/3320817/chinas-high-speed-rail-nears-50000km-milestone-debt-and-profit-concerns-mount?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320817/chinas-high-speed-rail-nears-50000km-milestone-debt-and-profit-concerns-mount?utm_source=rss_feed Tue, 05 Aug 2025 09:00:03 +0000 Alice Li Alice Li China’s central bank confirmed on Friday that it had established a new financial stability committee to defuse the nation’s mounting debt risks, as a senior government adviser suggested that Beijing needed to inject 1 trillion yuan (US$139 billion) into the property sector to stabilise developers’ balance sheets. The suggestion by Yin Zhongli, a counsellor for China’s State Council, comes as Beijing continues to wrestle with a four-year property crisis sparked by developer Evergrande Group’s... https://www.scmp.com/economy/china-economy/article/3320691/new-committee-bailout-talk-china-launching-fresh-property-rescue-effort?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320691/new-committee-bailout-talk-china-launching-fresh-property-rescue-effort?utm_source=rss_feed Mon, 04 Aug 2025 13:00:07 +0000 Carol Yang Carol Yang China’s finance minister has pledged to step up the use of fiscal tools to spur domestic demand and tackle local government debt, following stable growth and improved economic momentum in the first half of the year. Finance Minister Lan Foan said the central government would accelerate fiscal spending, including the issuance and use of ultra-long-term bonds and local government special-purpose bonds, in an article published on Wednesday in Study Times – a newspaper run by the Central Party... https://www.scmp.com/economy/china-economy/article/3320142/chinas-finance-minister-vows-fiscal-support-spur-demand-curb-local-government-debt?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320142/chinas-finance-minister-vows-fiscal-support-spur-demand-curb-local-government-debt?utm_source=rss_feed Wed, 30 Jul 2025 12:30:15 +0000 Sylvia Ma Sylvia Ma A prominent Chinese economist has pushed back against Bridgewater Associates founder Ray Dalio’s views on the debt situations in China and the United States, as debate over the fiscal directions of the world’s two largest economies heats up. Xu Gao, chief economist at Bank of China International (China), said in a recent 9,000-word article that Dalio was mistaken in calling for China to deleverage, arguing that such a view “misjudges” the country’s debt dynamics. “China’s recent debt-rollover... https://www.scmp.com/economy/global-economy/article/3319988/why-did-chinese-economist-slam-ray-dalios-assessment-debt-situations-us-china?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3319988/why-did-chinese-economist-slam-ray-dalios-assessment-debt-situations-us-china?utm_source=rss_feed Tue, 29 Jul 2025 14:00:12 +0000 Reuters Reuters China’s outstanding property loans rose to a two-year high in June, central bank data showed on Tuesday, following a series of policy measures aimed at stabilising the sector. China’s outstanding property loans stood at 53.33 trillion yuan (US$7.43 trillion) at the end of June, up 0.4 per cent from a year earlier, the People’s Bank of China said in a statement. Growth accelerated from 0.04 per cent in March, reaching the highest level since June 2023, according to central bank data. But growth... https://www.scmp.com/business/banking-finance/article/3319149/chinas-property-loans-rise-2-year-high-policy-support?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3319149/chinas-property-loans-rise-2-year-high-policy-support?utm_source=rss_feed Tue, 22 Jul 2025 09:34:49 +0000 June Xia June Xia It was a sprawling cultural and tourism project that completely went off the rails, and now Beijing is using it as evidence of grass-roots government mismanagement – one of three high-profile examples of wastefulness newly flagged by China’s disciplinary authorities. Following an investigation, the project – dubbed “Yaohan Longevity City” and located in Gongcheng Yao autonomous county of Guilin – was condemned as a “severe waste of resources”. Initially hailed in 2018 as a key initiative in the... https://www.scmp.com/economy/china-economy/article/3318788/china-slams-grass-roots-mismanagement-shames-longevity-city-debacle-warning?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318788/china-slams-grass-roots-mismanagement-shames-longevity-city-debacle-warning?utm_source=rss_feed Sat, 19 Jul 2025 03:00:15 +0000 Xiaofei Xu Xiaofei Xu China's top leaders have raised concerns about excessive competition in the domestic market in recent weeks, signalling a shift in policy priorities. In a meeting chaired by President Xi Jinping on July 1, the Central Finance and Economic Affairs Commission said Beijing needs to “focus on key and difficult issues, regulate enterprises’ disorderly and low-price competition” and “guide enterprises to improve product quality and promote the orderly exit of outdated production capacity”. The... https://www.scmp.com/economy/china-economy/article/3318110/why-chinas-fight-against-excessive-competition-different-past-reforms?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318110/why-chinas-fight-against-excessive-competition-different-past-reforms?utm_source=rss_feed Mon, 14 Jul 2025 05:57:19 +0000 David Tingxuan Zhang David Tingxuan Zhang Amid a prolonged economic transition, China’s growth engine is shedding its old gears. The heyday of real estate expansion is over. Urban home prices have lost their relentless upwards march and local governments, once flush with land revenues, are confronting fiscal strain. It is tempting to declare this the end of the land finance era, a long-anticipated turning point that will force Beijing to adopt a more sustainable fiscal model. Yet such a conclusion would be premature. For all the... https://www.scmp.com/opinion/china-opinion/article/3317446/why-land-and-property-remain-core-chinas-economic-transition?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3317446/why-land-and-property-remain-core-chinas-economic-transition?utm_source=rss_feed Thu, 10 Jul 2025 21:30:07 +0000 Alice Li,Ji Siqi Alice Li,Ji Siqi China will continue to “scientifically” plan and build megaprojects while maintaining its “investment intensity” over the next five years, officials said – even as Beijing seeks to shift to a more consumption-driven growth model. “To further drive economic development and improve people’s livelihoods, it is essential to maintain a certain scale of investment,” said Li Chunlin, vice-chairman of the National Development and Reform Commission (NDRC), the country’s top economic planner, at a press... https://www.scmp.com/economy/china-economy/article/3317569/china-pledges-build-megaprojects-despite-pivot-domestic-consumption?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3317569/china-pledges-build-megaprojects-despite-pivot-domestic-consumption?utm_source=rss_feed Wed, 09 Jul 2025 13:00:10 +0000 Alice Li Alice Li China should issue 30 trillion yuan (US$4.2 trillion) in treasury bonds to swap local governments’ hidden liabilities to re-energise growth momentum and cut off financial risks at their root, a Beijing-based think tank has proposed. Such a move, combined with a few trillion yuan worth of additional bonds to shore up the property market, boost consumption and remove excessive industrial capacity, would be a strong step toward resolving China’s local-level debt and real estate crises once and for... https://www.scmp.com/economy/china-economy/article/3316839/china-urged-restore-local-fiscal-capabilities-30-trillion-yuan-debt-swap?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3316839/china-urged-restore-local-fiscal-capabilities-30-trillion-yuan-debt-swap?utm_source=rss_feed Thu, 03 Jul 2025 22:00:14 +0000 He Huifeng He Huifeng Hunan has become the first province in China to use the proceeds of special-purpose bonds to guarantee government payments to enterprises, with 20 billion yuan (US$2.78 billion) allocated for this year. The inland province made the adjustment to its annual fiscal budget last month, marking the first time the bonds – typically earmarked for revenue-generating construction projects – will be used to cover government arrears. Proceeds will be distributed based on eligible outstanding debts from... https://www.scmp.com/economy/china-economy/article/3315075/word-bonds-chinas-provinces-use-special-purpose-funds-pay-debts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315075/word-bonds-chinas-provinces-use-special-purpose-funds-pay-debts?utm_source=rss_feed Fri, 20 Jun 2025 01:00:10 +0000 Kandy Wong Kandy Wong China has become the leading debt collector of developing countries, shifting from a net capital provider, “as bills coming due from its belt and road lending surge in the 2010s now far outstrip new loan disbursements”, according to new research. In 2025, about 75 of the world’s poorest and most vulnerable countries will make “record high debt repayments” totalling US$22 billion to China, according to research released on Monday by an Australian think tank, the Lowy Institute, as a result of... https://www.scmp.com/economy/china-economy/article/3311813/time-chinas-belt-and-road-partners-pony-debt-comes-due-think-tank-finds?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3311813/time-chinas-belt-and-road-partners-pony-debt-comes-due-think-tank-finds?utm_source=rss_feed Mon, 26 May 2025 12:00:08 +0000 This latest interview in the Open Questions series features Robin Xing, chief China economist at Morgan Stanley, where he leads macro and foreign exchange research on China. Xing, who has written extensively on China’s long-term economic outlook, says it will take more than tech “dragons” to fire up the economy and discusses the “impossible trinity” that Beijing faces. An expert in topics including China’s capital flows and its supply chain transition, Xing says he uses “three Rs” to measure... https://www.scmp.com/plus/article/3302169/tech-driven-optimism-china-wont-fix-economic-ills-morgan-stanley-economist-says?utm_source=rss_feed https://www.scmp.com/plus/article/3302169/tech-driven-optimism-china-wont-fix-economic-ills-morgan-stanley-economist-says?utm_source=rss_feed Thu, 13 Mar 2025 08:52:07 +0000