Two Trillion Yuan Bonanza for Local Platforms

A State Council circular six months ago urged government agencies nationwide to pay off debt, clean up local government financing platforms (LGFPs) and freeze city investment bond projects.

The directive followed an April decision by the National Development and Reform Commission (NDRC) that closed the door to new applications for city investment bonds.

Beijing's directives, however, neither relieved local governments of their financial responsibilities, nor their need for cash.