Half of China Cities Face Debt Service Difficulty, Rhodium Says
- Financial strains are limiting fiscal support this year
- Beijing needs a plan to restructure local government debt
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Financial stress faced by China’s local governments is limiting fiscal support for the economy’s recovery, with half of cities experiencing difficulty in managing the interest payments on their debt last year.
That’s according to a report by Rhodium Group researchers, who examined annual reports from 205 Chinese cities and nearly 3,000 local government financing vehicles, or LGFVs, the state-owned companies that carry out infrastructure investment.