China Tightens Scrutiny of LGFVs Offshore Borrowings

What’s new: Chinese authorities have tightened scrutiny on offshore borrowings by local governments’ financing vehicles (LGFVs) amid broader efforts to tackle local government debt risks.

Regulators have repeatedly told LGFVs not to add new borrowings, an executive of an LGFV in Shandong province told Caixin. Companies planning offshore bond sales have recently found it difficult to obtain regulators’ approval and credit backing from banks, said the executive.