Under pressure to finance their day-to-day operations as well as invest in more projects to grow the economy, local governments have turned to off-the-books funding sources for cash, despite a Budget Law effective in 2015 banned them from doing so. Experts estimate the figure to be anywhere from 30 trillion yuan to more than 70 trillion yuan.
Cheng Siwei and Zhang Yukun Nine provincial-level governments across China plan to raise a combined 410 billion yuan (USD56 billion) through special bonds to swap their hidden liabilities, bringing them onto the books, as Beijing pushes ahead with its plans to tackle localities’ trillions of dollars of implicit debt. The amount of these special refinancing bonds being sold by each government varies considerably, from Qinghai province issuing
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