Still Time to Avoid a Crisis

Rising financial risks associated with local governments concern markets. Predictions of the amount of debts governments have racked up range from 10 trillion yuan to 50 trillion yuan. The National Audit Office (NAO) announced on July 28 that it would evaluate the financial risks of all levels of governments from villages to central authorities. The audit will mainly focus on infrastructure projects, including railways and subways, government investment vehicles, and projects supported by land-transfer fees. The State Council, the country's cabinet, will likely receive the final report by mid-October.