Shanghai Starts Trial to Clear Hidden Debt as China Cuts Risks
- Central government wants to tackle off-balance sheet debt
- Guangdong province announced similar trial earlier this month
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The city of Shanghai launched a trial to eliminate all so-called hidden government debt, becoming the second Chinese region to start a program to clean up off-balance sheet risk.
The trial was in response to the central government’s strategy to prevent and resolve financial risks related to local government hidden debt, the Shanghai city government said in a statement on its website Tuesday. It didn’t provide further details on the trial.