Authorities have called for stronger checks on local bond sales, Bloomberg reported, citing newly released documents. The move comes after a surge of bonds sales has led to a significant increase in local debt. China’s leaders are trying to limit risks of local fundraising, which cities and towns rely on to bankroll construction projects. This year a record RMB1.5 trillion (US$244 billion) has already been sold, resulting in authorities considering requiring provincial governments to shift toward direct municipal debt sales. According to an official report, local government debt has risen 67% from the end of 2010 to June 30 of last year, reaching RMB17.9 trillion.
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