More Local Government Financing Vehicles Seek Independence

More than 40 local state-owned enterprises in Jiangsu province made announcements to exit from serving as local government financing vehicles so far this year, according to the calculation of National Business Daily. They will no longer finance public-welfare projects and promise to operate independently and be responsible for their own profits and losses. This means these financing platforms have resolved all the implicit debts and will participate in government projects as a market entity in future, said Wu Zhiwu, senior director at CSCI Pengyuan. This will also help expand their financing channels as different types of LGFVs are subjected to various financing limit and debt ratio management, the Daily said.