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CX Daily: The Unfinished Transformation of China’s LGFVs

Published: Oct. 9, 2025 9:16 a.m. GMT+8

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In Depth: The Unfinished Transformation of China’s LGFVs

Local government financing vehicles (LGFVs) in China are trying to transform themselves in a hurry after racking up trillions of dollars of debt.

The entities, long used by local governments to raise cash for infrastructure and public welfare projects, are trying to present themselves as market-driven platforms. They’ve got until the summer of 2027 to make the transformation stick.

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