Moody's: Chinese provinces face significant...>

CHINA: Moody's: Chinese provinces face significant fiscal shortfalls as growth

slows and debt rises

- Moody's Investors Service says in a new report that China's regional and local

governments (RLGs) face significant fiscal shortfalls, as the effect of tax cuts

are felt and bond quotas run out. "The provinces have already used 99% of their

RMB3.08 trillion bond quota for the year, and the Ministry of Finance last week

announced it would allocate RMB1 trillion of 2020 bond quota early to help

bolster infrastructure spending and, in turn, support growth," says Jack Yuan, a

Moody's Assistant Vice President and Analyst. "Meanwhile, revenue growth for the

RLGs slowed to 3.1% in the first three quarter of 2019, well below the 7.8%

recorded over the same period last year, and we expect many provinces will miss

their 2019 full-year target," adds Yuan.

- Link: https://tinyurl.com/t637s2b