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#ChineseFinancialSoup
According to S&P rating, the direct debt of local governments has exceeded 120% of their revenue.
The tactic that this has resulted in is local government financing vehicles (LGFV).
m.economictimes.com/news/internati…
According to S&P rating, the direct debt of local governments has exceeded 120% of their revenue.
The tactic that this has resulted in is local government financing vehicles (LGFV).
m.economictimes.com/news/internati…
"The ground reality of such a debt financing tool is that the government is borrowing money from citizens on WeChat in amounts as low as 10,000 yuan in order to get around the fact that banks will not lend to them anymore."
"China’s debt is nearly 44% of its GDP and its local governments owe nearly $5.14 trillion. With the economic slowdown and collapse of land sales revenue, provinces and local governments in China are facing an embarrassing situation"
China’s new premier Li Qiang has set a job creation target of 12 million & local govts responded by increasing debt they owe by hiring 190,000 people. 18% of the population aged 16 to 24 is unemployed at present & more than 11.5 million new graduates expected inthe job market"
"one wonders how the financial sector will actually recover in the years to come amidst the climate crisis, technology developments, machine learning, artificial intelligence, and China’s desire to maintain it’s image as a global superpower."
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