Category: LGFV

China is Mired in a Debt Crisis Fueled by Borrowing at Local Government Levels

February 28, 2022
ChinaChina Business & EconomyCity Debt Ratio Rankingdatapowerdebt ratiohidden debtLGFVWorld
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Financial reporting organizations in China are tracking a mounting debt crisis that stems from excessive borrowing by local governments, often used to pay existing debts. This matter has not been monitored by China’s central government because local governments are not required to report monies raised through local government financing vehicles (LGFV). China’s Ministry of Finance…

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Beijing Expands Real Estate Investment Trusts to Reduce Local Government Debt Risk

January 20, 2022
Business & EconomyCCPChinaChina Business & EconomyChinese economyChinese RegimeLGFVLocal Government DebtREITSUncategorized
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News Analysis Beijing has recently ordered local governments to accelerate the listing and issuance of real estate investment trusts (REITs) in the infrastructure sector, pledging to grant policy support. The Chinese Communist Party (CCP) is currently seeking to strengthen infrastructure funding channels and alleviate local debt risk, while easing pressure on the central government’s finance….

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Chinese Land Sales Falls Significantly, Deepening Local Government Debt Stress

January 15, 2022
ChinaChina Business & EconomyChina land salesdebt defaultevergrandeLGFVLocal Government Debt
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Chinese government land sales fell significantly through 2021, reversing a six-year streak of gains, as a cash crunch gripped the country’s most indebted developers and worsening local governments’ debt stress. Land sales in 2021 declined over 20 percent on average from a year earlier, with a deeper fall in the main development force of second-…

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