According to experts, at the governments recent twice-a-decade Central Financial Work Conference, led by President Xi Jinping, the conversations revolved around “strengthened regulation, risk prevention and growth promotion under the Communist Partys leadership over the financial sector”.
Reports suggest that the planned capacity of the top five Chinese solar manufacturers will increase by 54% by year-end to reach 465 gigawatts. But with capacity already exceeding demand and on track to balloon by 2030 to far in excess of forecast market requirements, analysts and investors are beginning to question whether these plans are justified.
More than 80% of local government financing vehicles do not have enough operating cash to cover interest payments on their debt, says UBS estimates. These entities are state-owned companies set up to finance infrastructure projects including highways and bridges.