China tightens grips on local government hidden debt

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China tightens grips on local government hidden debt
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SHANGHAI: China is stepping up restrictions on financing to local government financing vehicles (LGFVs) to mitigate risks from hidden debt, the ...

SHANGHAI: China is stepping up restrictions on financing to local government financing vehicles to mitigate risks from hidden debt, the official Securities Times reported on Monday .

In future, banks and insurers will refrain from providing fresh liquidity to those platforms that enjoy implicit guarantees from local governments, and will prevent hidden debts from increasing, the report said.

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