CX Daily: China’s ‘Hidden Debt’ of Local Governments Threatens National Economy

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Cover Story: China’s ‘hidden debt’ of local governments threatens national economy

China’s local government financing arms -- and the real estate industry that supports them -- have long been viewed as two important drivers for the nation’s economy. Now, after years of rapid growth, the property sector has hit the skids, triggering a liquidity crisis for municipal and provincial borrowers that poses risks to the country’s financial system.