Chinese local government investment vehicles evade borrowing limits: Move raises fears of bad debt surge after recent wave of bond defaults at state-backed companies
https://www.ft.com/content/93bd1857-e488-4bb9-a2a0-b2e8841bfe40 Regional governments across China are evading borrowing limits by transferring assets on to the books of local investment companies to lower their official debt-to-asset ratios, according to executives and officials. The practice has allowed local government finance vehicles to raise more money for infrastructure and other construction projects. But analysts warn that many of … Read more
