ECONOMY

China Names and Shames Local Officials Over Hidden Debt Violations

Published: Sep. 12, 2026 12:15 a.m. GMT+8

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On Sept. 11, 2026, the Central Commission for Discipline Inspection and the Ministry of Finance released six typical cases of accountability for hidden local government debt. Photo: VCG

China’s top anti-graft watchdog and the Ministry of Finance have publicly identified several local officials for either adding new hidden government debt or overstating progress in resolving existing liabilities.

The unusual joint disciplinary notice highlights Beijing’s determination to contain financial risks as a yearslong campaign to tackle trillions of yuan in off-balance-sheet local government debt moves into a crucial phase.

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China's anti-graft watchdog and finance ministry jointly named six cases of hidden local debt or falsified resolution results, spanning six provinces.
Wu Shenghua (Bijie, Guizhou) met only 20% of his 2024 debt-reduction target; Lan Hongbin (Yibin, Sichuan) created 3.8 billion yuan in new hidden debt.
By end-2025, total government debt hit 102.5 trillion yuan; local hidden debt fell to 6.5 trillion yuan from 14.3 trillion at end-2023.

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Who’s Who

Weinan Medical Investment Management Co. Ltd.: Weinan Medical Investment Management Co. Ltd. is a subsidiary of Weinan Old City Transformation and Development Group Co. Ltd. The local government instructed two public hospitals to borrow 100 million yuan, which was lent to this company for public projects, creating new hidden debt. The district health bureau director and the state-owned group's general manager received official warnings.

Weinan Old City Transformation and Development Group Co. Ltd.: Weinan Old City Transformation and Development Group Co. Ltd. is a state-owned group in Shaanxi province. Its subsidiary, Weinan Medical Investment Management Co. Ltd., received 100 million yuan borrowed by two public hospitals (instructed by the local government) for public projects, creating new hidden debt. The group's general manager received an official warning.

Yinchuan Binhe Yellow River Bridge Management Co. Ltd.: Yinchuan Binhe Yellow River Bridge Management Co. Ltd. received 2.958 billion yuan in debt-resolution funds from the Yinchuan Transport Bureau (Dec 2023–Feb 2025). Although the full amount was reported as resolved, only 1.16 billion yuan repaid debt; 1.8 billion yuan was diverted to routine operating expenses, constituting falsified results.

Jiujiang Fuhe Construction Investment Group Co. Ltd.: Jiujiang Fuhe Construction Investment Group Co. Ltd. (九江富和建设投资集团有限公司), based in Jiangxi province, was cited by China's anti-graft watchdog for falsely reporting 1 billion yuan in debt resolution (July–December 2023). It used funds from corporate bonds and loans from other state-owned firms to repay liabilities, misrepresenting the amount as fully resolved.

Jieshou Leju Construction Co. Ltd.: Jieshou Leju Construction Co. Ltd., based in Anhui province, received 182 million yuan in debt-resolution funds in December 2024. It repaid only 42 million yuan in principal but falsely reported the full amount as resolved, overstating debt reduction by 140 million yuan, according to a joint disciplinary notice from China's anti-graft watchdog and finance ministry.

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What Happened When

June 2020 to July 2021：: Lan Hongbin, as Party secretary of the Yibin Lingang Economic and Technological Development Zone and director of the Yibin Sanjiang New Area, approved advance payments creating nearly 3.8 billion yuan in new hidden debt.

June 2025：: Lan Hongbin, a former vice mayor of Yibin in Sichuan, surrendered to authorities and was placed under investigation.

July 2025：: Wu Shenghua, former Communist Party secretary of Bijie in Guizhou, came under investigation.

December 2023 to January 2024：: The local government in Linwei district, Weinan city, Shaanxi, instructed two public hospitals to borrow 100 million yuan, creating new hidden debt.

December 2023 to February 2025：: The Yinchuan Transport Bureau in Ningxia transferred 2.958 billion yuan in debt-resolution funds to Yinchuan Binhe Yellow River Bridge Management Co. Ltd.; only 1.16 billion was used for debt repayment.

July to December 2023：: Jiujiang Fuhe Construction Investment Group Co. Ltd. in Jiangxi falsely reported 1 billion yuan of debt resolution.

December 2024：: Jieshou Leju Construction Co. Ltd. in Anhui received 182 million yuan in debt-resolution funds but overstated debt reduction by 140 million yuan.

January 2026：: Wu Shenghua was transferred to judicial authorities.

September 11, 2026：: The Central Commission for Discipline Inspection and the Ministry of Finance published six representative cases spanning six provinces and autonomous regions, addressing new hidden debt and falsified debt-resolution results.

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