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Local govts issue $264.5 billion bonds to support economy


SOURCE / ECONOMY
By Ma Jingjing Published: May 10, 2021 09:23 PM
Workers are busy at the construction site of a smart factory in the economic and technological development zone in Yinchuan City, northwest China s Ningxia Hui Autonomous Region, May 1, 2021. Photo: Xinhua
China s local governments issued 1.7 trillion yuan ($264.5 billion) worth of bonds as of Sunday, which analysts said reflects the continuity of the proactive fiscal policy to support post-pandemic economic recovery.
With outstanding local government debt projected to reach 30 trillion yuan at the end of this year, analysts have warned of rapid debt growth risks, such as through implicit borrowing - that may increase the pressure on local governments to meet debt repayments. ....

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