Record Number of China LGFVs Overdue on Short Debt
- 48 LGFVs overdue on commercial paper in July, brokerage says
- Shandong, Guizhou lead for delinquencies going back to 2021
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China’s local government financing vehicles are showing more signs of stress, with a record number missing payments on a popular type of short-term debt last month.
A total of 48 LGFVs were overdue on commercial paper, which typically carries a maturity of less than a year, up from 29 in June, according to a Huaan Securities Co. report citing data from the Shanghai Commercial Paper Exchange. Their missed payments amounted to 1.86 billion yuan ($259 million), versus 780 million yuan in June.