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China Puts Debt of Local Governments, State Firms in Firing Line

Monday’s meeting of the Central Financial and Economic Affairs Commission said the government will focus its resources on problems that may threaten economic and social stability or trigger systemic risks. Photo: VCG
Monday’s meeting of the Central Financial and Economic Affairs Commission said the government will focus its resources on problems that may threaten economic and social stability or trigger systemic risks. Photo: VCG

*Development underscores concern about the continued growth in local government and corporate debt

*Finance Ministry warns state-owned financial institutions to obey a ban on providing financing to local governments in any form other than buying their bonds

(Beijing) — Pressure is growing on China’s local governments and state-owned enterprises (SOEs) to cut their debt, with President Xi Jinping and the country’s top economic policymakers adding their weight to calls for immediate action.

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