China Local Governments to Sell $206 Billion of Financing Debt

  • Caixin says PBOC to set up emergency liquidity tool for LGFVs
  • Beijing also considering plan to sell special local bonds
WATCH: China is considering stronger action to address risks from local government financing vehicles, according to financial media outlet Caixin. John Liu reports.Source: Bloomberg
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China is considering stronger action to address risks from local government financing vehicles, with Caixin reporting on a plan to give the businesses cheap funding as debt concerns mount.

The central bank may set up an emergency liquidity tool with banks to provide low-cost funds with longer maturities to LGFVs, Caixin reported on Saturday, without saying where it got the information.