Local government debt has become one of the...>

CHINA: Local government debt has become one of the key risks in the financial

sector, Fan Gang, a monetary policy committee member of the People's Bank of

China, said Friday at the Financial Street Forum 2017 sponsored by the Beijing

government. Funding for infrastructure construction projects should come through

long-term public debts, not through non-financial funding or bank loans, Fan

noted. During the previous economic crisis, local governments set up funding

vehicles and loaned out short-term funds which needed to be repaid before any

long-term infrastructure projects related to the funds could make profits,

hurting the financial system, Fan said. China needs to issue long-term yuan

public debts as it carries out its "One Belt, One Road" initiative.