China unveils new ‘hidden debt’ scheme for local governments
1 month, 4 weeks ago

China unveils new ‘hidden debt’ scheme for local governments

Hindustan Times  

China has unveiled an ambitious plan to relieve public debt, aiming to turn local governments away from belt-tightening practices that have exacerbated a domestic downturn. Policymakers approved a proposal to swap six trillion yuan of hidden debt belonging to local governments for official loans with more favourable terms. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} Policymakers gathered in Beijing this past week approved a proposal to swap six trillion yuan of hidden debt belonging to local governments for official loans with more favourable terms. Much of local governments' hidden debt in the past two decades was accumulated through state-owned companies known as local government financing vehicles. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} Burdened by debt, local authorities have in recent years turned to cost-saving measures like cutting civil servant salaries and pensions, suspending transport services and aggressively collecting fines and fees from businesses.

China Local Beijing Local Governments Governments Hidden Debt  trillion  governments  scheme  usersubscribedusersubscribed  loans  plan  hidden  debt  billion  local  unveils  yuan  china

History of this topic

China moves to Trump-proof its economy
4 weeks ago

China moves to Trump-proof its economy

Live Mint  

SINGAPORE : China’s leaders promised more government support for their struggling economy next year as they brace for the return of President-elect Donald Trump and another big showdown over trade. An annual gathering of top officials on the economy concluded with pledges to cut interest rates and boost government borrowing to pep up economic growth, according to a report by …

Debt swaps to rejuvenate local governments
1 month, 2 weeks ago

Debt swaps to rejuvenate local governments

China Daily  

CAI MENG/CHINA DAILY On Nov 8, the Standing Committee of the National People's Congress approved an increase of 6 trillion yuan in the local government special bond ceiling to replace outstanding hidden debt — or liabilities of local governments that are not officially recorded. Local governments will be eligible for local government special bonds worth another 4 trillion yuan over …

Debt swaps to rejuvenate local governments
1 month, 2 weeks ago

Debt swaps to rejuvenate local governments

China Daily  

By Luo Zhiheng | China Daily | Updated: 2024-11-25 09:58 CAI MENG/CHINA DAILY On Nov 8, the Standing Committee of the National People's Congress approved an increase of 6 trillion yuan in the local government special bond ceiling to replace outstanding hidden debt — or liabilities of local governments that are not officially recorded. Local governments will be eligible for …

Policy support driving V-shaped recovery in Q4, experts say
1 month, 2 weeks ago

Policy support driving V-shaped recovery in Q4, experts say

China Daily  

There are signs of a "V-shaped" recovery in the Chinese economy with a raft of policy support measures taking swift effect and more spending plans in the pipeline to consolidate the momentum, experts at national think tanks said. Dong Shaopeng, an advisory committee member of the Securities Association of China, said that by advancing investment projects, the ongoing round of …

Policy support driving V-shaped recovery in Q4, experts say
Top News
1 month, 2 weeks ago

Policy support driving V-shaped recovery in Q4, experts say

China Daily  

The skyline of Beijing. There are signs of a "V-shaped" recovery in the Chinese economy with a raft of policy support measures taking swift effect and more spending plans in the pipeline to consolidate the momentum, experts at national think tanks said. Dong Shaopeng, an advisory committee member of the Securities Association of China, said that by advancing investment projects, …

Policy support driving V-shaped recovery in Q4, experts say
Top News
1 month, 2 weeks ago

Policy support driving V-shaped recovery in Q4, experts say

China Daily  

The skyline of Beijing. There are signs of a "V-shaped" recovery in the Chinese economy with a raft of policy support measures taking swift effect and more spending plans in the pipeline to consolidate the momentum, experts at national think tanks said. Dong Shaopeng, an advisory committee member of the Securities Association of China, said that by advancing investment projects, …

Policy support driving V-shaped recovery in Q4, experts say
Top News
1 month, 2 weeks ago

Policy support driving V-shaped recovery in Q4, experts say

China Daily  

By Zhou Lanxu | chinadaily.com.cn | Updated: 2024-11-20 14:59 The skyline of Beijing. There are signs of a "V-shaped" recovery in the Chinese economy with a raft of policy support measures taking swift effect and more spending plans in the pipeline to consolidate the momentum, experts at national think tanks said. Dong Shaopeng, an advisory committee member of the Securities …

Policy support driving V-shaped recovery in Q4, experts say
Top News
1 month, 2 weeks ago

Policy support driving V-shaped recovery in Q4, experts say

China Daily  

The skyline of Beijing. There are signs of a "V-shaped" recovery in the Chinese economy with a raft of policy support measures taking swift effect and more spending plans in the pipeline to consolidate the momentum, experts at national think tanks said. Dong Shaopeng, an advisory committee member of the Securities Association of China, said that by advancing investment projects, …

Policy support driving V-shaped recovery in Q4, experts say
1 month, 2 weeks ago

Policy support driving V-shaped recovery in Q4, experts say

China Daily  

The skyline of Beijing. There are signs of a "V-shaped" recovery in the Chinese economy with a raft of policy support measures taking swift effect and more spending plans in the pipeline to consolidate the momentum, experts at national think tanks said. Dong Shaopeng, an advisory committee member of the Securities Association of China, said that by advancing investment projects, …

China unveils new ‘hidden debt’ scheme for local governments
1 month, 4 weeks ago

China unveils new ‘hidden debt’ scheme for local governments

Hindustan Times  

China has unveiled an ambitious plan to relieve public debt, aiming to turn local governments away from belt-tightening practices that have exacerbated a domestic downturn. Policymakers approved a proposal to swap six trillion yuan of hidden debt belonging to local governments for official loans with more favourable terms. Policymakers gathered in Beijing this past week approved a proposal to swap …

How China plans to cut hidden debt in massive shakeup
1 month, 4 weeks ago

How China plans to cut hidden debt in massive shakeup

New Indian Express  

SHANGAI: China has unveiled an ambitious plan to relieve public debt, aiming to turn local governments away from belt-tightening practices that have exacerbated a domestic downturn. Policymakers gathered in Beijing this past week approved a proposal to swap six trillion yuan of hidden debt belonging to local governments for official loans with more favourable terms. Much of local governments' hidden …

China unveils $1.8 tn package to help debt-ridden local governments but falls short of providing strong stimulus
2 months ago

China unveils $1.8 tn package to help debt-ridden local governments but falls short of providing strong stimulus

Firstpost  

The Chinese authorities noted that the new economic measures could cut the debt of local governments to 2.3 tn yuan by the end of 2028. The fiscal package which is expected to help local governments boost their economies includes raising the debt ceiling by 6tn yuan over three years. The initiative would help the local government to replace their hidden …

China’s 10-year bond yields drop amid $1.4 billion debt refinancing program, more stimulus awaited
2 months ago

China’s 10-year bond yields drop amid $1.4 billion debt refinancing program, more stimulus awaited

Live Mint  

Yield for China's benchmark 10-year bonds have slid to their lowest in over a month after the government announced its 10 trillion yuan or $1.4 billion worth debt refinancing programme, Bloomberg reported. China's Debt Refinancing Programme — The Details The announcement was made after the National People’s Congress Standing Committee meeting on November 8, to “underwhelmed” reactions, as per the …

China’s stimulus falls short, as a showdown with Trump looms
2 months ago

China’s stimulus falls short, as a showdown with Trump looms

Live Mint  

ECONOMIST SOMETIMES say that China suffers from the three Ds: debt, deflation and poor demographics. Lan Fo’an, China’s finance minister, said that local governments would be allowed to issue extra bonds worth trillions of yuan to replace riskier “hidden" debts. These hidden liabilities typically belong to local-government financing vehicles, quasi-commercial infrastructure firms Hidden debts have been a nagging worry for …

To revive sluggish economy, China announces $1.4 tn bailout package for local govts
2 months ago

To revive sluggish economy, China announces $1.4 tn bailout package for local govts

Firstpost  

As China appears set to miss the 5% annual growth target amid continuing economic woes, the Standing Committee of the National People’s Congress has approved a $1.4 trillion package to refinance the unsustainable debt of local governments In the latest step to revive the sluggish economy, China on Friday announced a $1.4 trillion package. The bailout package, announced by Finance …

China approves $840B plan to refinance local government debt, boost slowing economy
2 months ago

China approves $840B plan to refinance local government debt, boost slowing economy

Associated Press  

BEIJING — China on Friday approved a 6 trillion yuan plan to help local governments refinance their mountains of debt, in the latest push to rev up growth in the world’s second largest economy. Finance minister Lan Fo’an estimated that the hidden debt of local governments was 14.3 trillion yuan at the end of 2023. Lan said 2 trillion yuan …

China economy: Beijing approves $1.4 trillion debt package in latest measure to boost flagging growth
2 months ago

China economy: Beijing approves $1.4 trillion debt package in latest measure to boost flagging growth

CNN  

Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world. Hong Kong CNN — China has approved a 10 trillion yuan plan to bolster its ailing economy by allowing local governments to refinance their debt, unveiling additional stimulus measures to counter a potentially …

China’s coming stimulus is necessary but likely insufficient
2 months ago

China’s coming stimulus is necessary but likely insufficient

Live Mint  

Hopes for a massive fiscal stimulus have sent Chinese stocks on a roller-coaster ride in the past month or so. These local governments have racked up piles of debt over the years as they are responsible for the bulk of public spending from infrastructure to education, but lack reliable revenue sources to match. China’s housing market implosion has drastically reduced …

China leverages fiscal toolbox to consolidate economic growth
2 months ago

China leverages fiscal toolbox to consolidate economic growth

China Daily  

China has appropriately enhanced the intensity of the proactive fiscal policy so far this year, utilizing a combination of policy tools, including ultra-long special treasury bonds and tax and fee reductions to promote its sustained economic recovery. Some 700 billion yuan of funds raised via the ultra-long special treasury bonds have been allocated to support the implementation of major national …

China to unveil massive debt swap program to avert economic crisis
2 months, 3 weeks ago

China to unveil massive debt swap program to avert economic crisis

China Daily  

China is considering a massive debt swap program worth trillions of yuan to address its economic challenges. The program will focus on alleviating debt pressures facing local governments, boosting corporate performance, and stabilizing the regulatory environment. The central government plans to increase the debt limit by a large scale at once and replace the hidden debt of local governments, without …

Local government debt risks subside on effective resolution moves
4 months, 1 week ago

Local government debt risks subside on effective resolution moves

China Daily  

China's economic growth and the expansion of its debt are intricately intertwined, with the synchronized growth of debt and asset accumulation exemplifying the unique characteristics of the country's economic development. Since the 18th National Congress of the Communist Party of China, the central government has placed significant emphasis on addressing local government debt issues, particularly the hidden debt risks associated …

China to step up fiscal policy implementation to spur economic recovery: official
5 months, 1 week ago

China to step up fiscal policy implementation to spur economic recovery: official

China Daily  

A Chinese clerk counts renminbi yuan banknotes in Nantong, East China's Jiangsu province. The country will issue the ultra-long special treasury bonds in a timely manner and make good use of the funds raised from the bond sales, Lin Zechang, of the Ministry of Finance, told a press conference. Lin said that the country will also speed up the issuance …

Pay down time
7 months ago

Pay down time

China Daily  

SHI YU/CHINA DAILY The Chinese government still has ample policy space to deal with the country's debt problems The scale of China's debt and its ratio to GDP have increased rapidly over the past decade. After China's industrialization peaked, capital-intensive enterprises no longer borrowed heavily, and local government financing platforms and households became the main sources of new debts. China …

Local govt debt risk controllable, Minister of Finance says
10 months ago

Local govt debt risk controllable, Minister of Finance says

China Daily  

A cashier counts RMB notes in a bank in Haian, Jiangsu province. Local government debt risk in China is controllable, and the country will accelerate the construction of a government debt management mechanism in line with high-quality development so that the debt risk will be solved as the country marches toward high-quality development, a senior official said on Wednesday. Lan …

China weighs more stimulus, considers $139 billion of special bonds: Report
11 months, 3 weeks ago

China weighs more stimulus, considers $139 billion of special bonds: Report

Live Mint  

China is considering 1 trillion yuan of new debt issuance under a special sovereign bond plan - which will be only the fourth such sale in the past 26 years, according to a Bloomberg report. In that case, Beijing took the unusual step of raising 2023’s fiscal deficit ratio to about 3.8 per cent of gross domestic product — an …

China’s Colossal Hidden-Debt Problem Is Coming to a Head
1 year, 1 month ago

China’s Colossal Hidden-Debt Problem Is Coming to a Head

Live Mint  

China is trying to defuse a financial time bomb that could severely damage its banking system. In early November, China’s central government said it places “great importance to the prevention and resolution of the risk of hidden debts of local governments." Pan Gongsheng, the governor of the People’s Bank of China, said at a Beijing financial forum last month that …

The $2 trillion interest bill that’s hitting governments
1 year, 1 month ago

The $2 trillion interest bill that’s hitting governments

Live Mint  

The world spent the past decade-plus taking advantage of rock-bottom interest rates to binge on debt. Governments are expected to spend a net $2 trillion paying interest on their debt this year as higher interest rates make borrowing more expensive, up more than 10% from 2022, according to an analysis of International Monetary Fund data by research consulting firm Teal …

From deflation to high debt burden: Here’s 5 things happening in Chinese economy
1 year, 2 months ago

From deflation to high debt burden: Here’s 5 things happening in Chinese economy

Live Mint  

China is facing the challenges of an economic deceleration and a substantial debt crisis within its real estate industry. “Combating persistent disinflation amid weak demand remains a challenge for Chinese policymakers,” Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Ltd told Bloomberg. Better growth forecasts- Despite a slowdown, the future doesn't look very bleak for the Chinese …

PBOC to provide emergency liquidity support in necessary circumstances
1 year, 2 months ago

PBOC to provide emergency liquidity support in necessary circumstances

China Daily  

The People's Bank of China. The People's Bank of China, the country's central bank, will provide emergency liquidity support for local governments facing relatively heavy debt burden when necessary, said Pan Gongsheng, governor of the PBOC. Overall, China's size of government debt is on the lower-middle end globally, Pan said on Wednesday at the opening ceremony of the Annual Conference …

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns
1 year, 3 months ago

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns

The Telegraph  

China is driving global debt back towards unsustainable levels amid an “unparalleled” borrowing binge by property developers and local governments, according to the International Monetary Fund. The IMF warned that a declining global debt share in 2022 risked being just a “pandemic blip” and said there was an urgent need to “restore fiscal sustainability”. “Global debt, which remained significantly higher …

Why LGFV Debt Is a Growing Risk for China’s Economy
1 year, 7 months ago

Why LGFV Debt Is a Growing Risk for China’s Economy

Bloomberg  

Cracks are showing in a pillar of China’s debt market known as local-government financing vehicles, or LGFVs. With many local authorities facing cash-flow problems due to the country’s real estate crisis, there are growing concerns Bloomberg Terminal about this $9 trillion market — prompting the government to take steps to effectively bail out weaker issuers and avert a credit crunch. …

China is pushing poor nations like Pakistan into its debt trap, one at a time
1 year, 7 months ago

China is pushing poor nations like Pakistan into its debt trap, one at a time

Op India  

The People’s Republic of China has been pushing poor countries to the brink of economic ruin through its well-thought-out ‘debt trap’ and its unforgiving nature when it comes to the recovery of loans. An AP analysis found that countries heavily indebted to China are draining foreign currency reserves used to pay interest on loans, leaving some with just months before …

China’s cash-strapped local governments can’t pay workers on time
1 year, 7 months ago

China’s cash-strapped local governments can’t pay workers on time

Al Jazeera  

China’s local municipalities are heavily in debt, with all 31 apart from Shanghai reporting deficits in 2022. “This was unimaginable before.” Hu’s delayed wages are a symptom of a deeper malaise in the finances of local governments in China. Excessive spending on “zero-Covid”-related policies and the downturn in the real estate market have contributed significantly to local governments’ financial woes, …

China to expand fiscal spending to support economic recovery
2 years ago

China to expand fiscal spending to support economic recovery

China Daily  

A worker counts Chinese currency renminbi at a bank in Linyi, East China's Shandong province. China will appropriately expand fiscal spending as the government aims to provide "more direct and effective" fiscal support for economic recovery in 2023, according to the Ministry of Finance. "We will appropriately expand fiscal spending by optimizing the tool mix of fiscal deficit, local government …

China Credit Investors Brace for More Surprises From Hidden Debt
2 years, 10 months ago

China Credit Investors Brace for More Surprises From Hidden Debt

Bloomberg  

China Credit Investors Brace for More Surprises From Hidden Debt China Credit Tracker Share this article China’s credit markets are ushering in the new year with a fresh bout of stress, as scrutiny of hidden debt among the nation’s developers adds to turmoil in a sector facing mounting bills and limited fundraising options. Distress in the nation’s $870 billion offshore …

China Outspends US And Major Powers 2-To-1 Basis BRI Spent $843 Bn Across 165 Countries AidData
3 years, 3 months ago

China Outspends US And Major Powers 2-To-1 Basis BRI Spent $843 Bn Across 165 Countries AidData

ABP News  

New Delhi: China outspends the United States and other major powers by at least 2:1 in its Belt and Road Initiative with annual international development finance commitments hovering around $85 billion a year. Introducing a uniquely comprehensive and granular dataset of international development finance from China, the study captures 13,427 projects worth $843 billion across 165 countries in every major …

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report
3 years, 3 months ago

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report

Op India  

China has long been known for using its financial clout to further “debt-trap diplomacy”, a policy that encompasses saddling borrowing nations with excessive credit with the intention of extracting economic or political concessions from the debtor country when it finds it increasingly difficult to meet its debt repayment obligations. Now, a report published by AidData says China’s Belt and Road …

China to accelerate issuance, use of local government bonds
4 years, 7 months ago

China to accelerate issuance, use of local government bonds

China Daily  

The Ministry of Finance on June 8 called for efforts to expedite the issuance of local government bonds and accelerate use of the funds raised from those bonds. Funds raised from special local government bonds should primarily be used to invest in major sectors and major projects, according to a statement issued by the ministry after a national meeting of …

Discover Related