Some local governments' debt ratios.....>

CHINA PRESS: Some local governments' debt ratios are high enough to approach or

surpass the warning level, Gu Shengzu, vice chairman of the China Democratic

National Construction Association, formed by members of the economic sector,

wrote in an article published in the People's Daily Wednesday. He said the

observation was based on his research and on-site examinations. The main problem

of local government debt is that some regions rely too heavily on leverage for

investment and that the pace of growth is too fast for some regions' outstanding

debt -- sometimes doubling from the year before -- causing substantial pressure

on their debt repayment ability, Gu said. He stressed that financial and fiscal

risks from local government debt deserve much attention, and China must

eliminate and prevent them actively and steadily. (People's Daily)