Now for the Clean-Up: China Crafts Plan for Local-Debt Mess

More than six years after China unleashed a record credit boom to shore up growth in the grip of the biggest global financial crisis since the 1930s, policy makers are starting to address the shaky financing that resulted.

In a template that could be expanded, regulators laid out ground rules for local governments to swap high-yielding, short-term loans for lower-cost, longer-term municipal debt.