/RATINGS: Moody's: Chinese RLGs continue to...>

CHINA: /RATINGS: Moody's: Chinese RLGs continue to face financing gaps amid

slowing growth, coronavirus outbreak

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

governments (RLGs) will continue to face significant funding shortfalls this

year, as the coronavirus outbreak will further pressure already slowing revenue

growth. "The RLGs in 2019 recorded their lowest growth rate in general budgetary

revenue in a decade on the back of centrally mandated tax reductions and slowing

economic growth," says Jack Yuan, a Moody's Assistant Vice President and

Analyst. Specifically, generally budgetary revenue rose by 3.2% in 2019, well

below the 7.0% recorded in 2018 and the full-year target of 4.9%. "We expect the

coronavirus outbreak will result in lower RLG revenue growth, although policy

measures by the central government should support RLGs through higher transfers

and bond quotas," adds Yuan.

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