China Toughens Measures on Hidden Debt Risks: Times

China's financial institutions are working more closely with regulators to enhance monitoring systems to control the risks of local government funding vehicles, and they must check with the management platform before lending to risky borrowers, the Securities Times said citing unidentified industry participants. Some projects have been called off by the funding institutions after the investors were found to have hidden debt, the newspaper said. While China's listed government debts amount to 45.8% GDP, some of the debt raised by the local governments remain hidden and unaccounted and continues to rise to record, the newspaper said. China is still raising debt this year, though through more regulated channels, including plans to issue almost CNY3 trillion local bonds in H2, the newspaper said.