Deals
China Regulator Aims to Ease Local Govt Debt Concerns
This article is for subscribers only.
China’s banking regulator tried to ease concern over risks from bank lending to local government financing vehicles, saying such loans won’t necessarily go bad.
The China Banking Regulatory Commission said in a statement that risks can be contained through measures to secure repayment. Such loans are typically backed by collateral and guarantees, it said today. Separately, Finance Minister Xie Xuren said local governments should improve their financial management.