China’s Local Governments Paid Record $174 Billion in Bond Interest Last Year

China’s local governments spent a record 1.23 trillion yuan ($174 billion) on bond interest payments last year, up nearly 10% from 2022, official data showed Tuesday.

Interest Payments on China’s Local Government Bonds Hit Record

Outstanding local government debt has also been steadily climbing over the past few years, reaching 40.74 trillion yuan by the end of 2023 — a 16% year-on-year increase, according to data published by the Ministry of Finance.

Local Government Borrowing Balloons