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China Local-Government Debt Risk Needs ‘Attention,’ PBOC Says

China’s central bank urged “paying attention” to the credit risks of local-government financing vehicles because their debts have long maturities and are difficult to oversee.

Some companies set up by provincial and municipal governments to fund infrastructure projects are unsustainable, the People’s Bank of China said in a report on its website late yesterday. The loans are “generally large, with long maturities, and it is difficult to oversee their use,” the central bank said.