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More Refinancing Bonds Set For Resolving Local Debt Risks

CHINA PRESS
MNI (Singapore)

Chinese authorities have deployed measures to resolve local debt risks in H2, however, details are yet to be revealed, while local authorities are expected to issue more refinancing bonds within the legal debt limit to roll over some implicit liabilities. In August, refinancing bond issuance hit a new yearly high over CNY600 billion, though local governments have not used the proceeds to repay the implicit debt. By end-2022, the national local government debt balance was about CNY35.1 trillion, controlled within the CNY37.7 trillion local debt limit approved by the National People's Congress, which leaves room for CNY2.6 trillion of refinancing bonds. (Source: 21st Century Business Herald)

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