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Opinion
Christopher Langner

China's Local Debt Problem Goes Global

Dollar bond offerings from junk-rated LGFVs are increasing.

A very local problem in China is being exported at an alarming rate.

Debt from special-purpose vehicles linked to municipal and provincial governments -- leverage that central authorities are trying (unsuccessfully) to extinguish -- is becoming more common in overseas markets. What's worse, lately it's been the weakest cities and provinces panhandling to international investors.