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 the assets are of poor quality, setting the stage for a surge in bad debts after a wave of bond defaults at government-backed companies in recent weeks.
“Many of our assets do not generate much economic value,” Liu Pengfei, president of Taiyuan Longcheng Development Investment, an LGFV in the northern city of Taiyuan, said at an investment conference this month. “The Taiyuan government gave them to us so we can meet [the debt-to-asset] requirements set by our creditor banks and bond investors.”
TLDI used to focus on infrastructure projects. Now, it is a large, diversified operator of everything from parking facilities to tourist attractions, many of which are barely staying afloat.
- Fleet Of B-52s Recorded Flying Over Long Island Out To The Atlantic Ocean Toward Europe..Something’s Up…
- “You would have a far-Right government in every country in Europe”
- US Now Lone Suspect in Nord Stream Pipe Bombing
- The Food Supply is Contaminated With SPIKE PROTEINS
- Another domino is starting to fall…
- This is EXACTLY how they will take away the CASH. So easy it’s RIDICULOUS.
- Woman “forgives” her mothers killer, visits him in jail. Upon release woman gives him a job at the decease mothers house and is quickly killed too.
- Fact checkers are quick on damage control for Project Veritas video. He was literally talking about directed evolution of COVID-19. How in the hell is that not clear enough for you?
- Putin ‘plans new pre-emptive strike’: Russia will launch assault West by February 24
- Justin Trudeau is in meltdown mode. Canada Freedom Convoy back to celebrate their 1 year anniversary with a Protest Party.
Views: 8