China’s local government financing vehicles (LGFVs) are a baffling construct. They emerged in the wake of the global financial crisis, as Beijing sought ways to inject life into provincial cities.
In other countries, these off-budget organizations, which help local officials raise money to splash out on big projects – usually infrastructure – would by now have been wound up.
But China is not built that way.
They hung around, growing ever-more bloated with debt. At the end of 2021, total LGFV debt was Rmb54.4
Thanks for your interest in Euromoney!
To unlock this article:
