China’s Assurances on Soaring Local Debt Fail to Ease Concerns
- Government finances are generally healthy, official says
- Local government debt is top risk for investors, survey shows
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China’s bid to reassure investors over its soaring local debt did little to soothe concerns over financial stability risks in the world’s second-largest economy.
Xinhua News agency published a report Monday quoting an unidentified official from the Ministry of Finance saying government finances are healthy and safe, and authorities had enough resources to tackle risks. Systemic risks would be avoided, the official said.