Local governments are strictly banned...>

CHINA PRESS: Local governments are strictly banned from using reserve land as a

collateral for financing -- 'illegal financing' as it has been referred to --

and they are forbidden to move reserve land to local state-owned

enterprises(SOEs) as an asset, a government document has laid out. The move aims

to curb new local government implicit debts, the Economic Information Daily

reported, citing the Ministry of Natural Resources.

- The confirmed regulations say all local governments may no longer take land

reserve loans from banks, and land reserve agencies shall not provide guarantees

for any debt, the newspaper said citing the Ministry.