https://www.bloomberg.com/news/articles/2018-10-16/china-may-have-5-8-trillion-in-hidden-debt-with-titanic-risks
China’s local governments may have accumulated 40 trillion yuan ($5.8
trillion) of off-balance sheet debt, or even more, suggesting further
defaults are in store, according to S&P Global Ratings.
“The
potential amount of debt is an iceberg with titanic credit risks,”
S&P credit analysts led by Gloria Lu wrote in a report Tuesday. Much
of the build-up relates to local government financing vehicles, which
don’t necessarily have the full financial backing of local governments
themselves.
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