Reforms Needed To Prevent Hidden Debt - Yicai

China should transform urban investment platforms into ordinary operating state-owned enterprises and form clear boundaries between government and urban investment to prevent new hidden debt from accumulating, according to Yicai. Experts interviewed by the news outlet said, despite the government making strong efforts to prevent hidden debt, local authorities' involvement in activities such as unauthorised borrowing and providing guarantees remained an issue. Local leaders borrowed excessively for political achievements and had implemented the new development concept incorrectly. Auditors recently found cases in Hunan, Gansu and other provinces where new hidden debts had been issued. (Source: Yicai)