Investors seem to have lost their appetite for bonds issued by Chinese developers while rising defaults have pushed the cost of funding for the entire sector.
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China has begun tightening bond issuance criteria for local government financing vehicles and ordered regional governments to clear existing credit by 2028, amid growing concern about off-balance sheet debt.
China is the largest creditor to emerging-market countries and its involvement is crucial in reaching a global consensus around debt disclosure requirements, says Bretton Woods Committee.
Guizhou in southwest China has struggled to raise funds in recent years in capital markets as a result of its deteriorating credit profile, and this week the State Council outlined plans to support its growth.