China’s Weak Local Borrowing Raises Hope for More Central Aid
- Regional governments to issue 13% less bonds in 1Q than 2023
- Economists see Beijing borrowing more to fill investment gap
Workers puts a cover on the grass for protection at Genghis Khan Mausoleum in Ordos, Inner Mongolia, China.
Source: Bloomberg
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China’s local governments so far appear reluctant or unable to borrow more despite pressure to stimulate growth, fueling expectations Beijing may pick up their slack and take on more debt.
Regional authorities nationwide plan to issue new bonds totaling 1.08 trillion yuan ($150 billion) for the first quarter, about 13% less than they sold over the same period last year and the lowest since 2021, Bloomberg-compiled data showed. That tally doesn’t include several local governments that hadn’t disclosed their plans by Friday, including Shanghai, Guangdong and Dalian.