Closer Look: A Far-Fetched Bailout Plan

The rumors that Chinese authorities plan shift the 2 to 3 trillion yuan worth of potential non-performing loans off local government balance sheets as cited in a report by Reuters on May 31 immediately generated a new round of acrimony on the issue – but are these concerns unfounded?

Caixin has learned that the plan is still being debated by only a handful of officials from the Ministry of Finance. Officials from both the China Banking Regulatory Commission (CBRC) and National Development and Reform Commission (NDRC) have commented that they are not aware of any such arrangement.