Bloomberg with the info on China’s local government financing vehicles.
Bloomberg saying it'll test the central government's resolve to backstop local governments in refinancing their debt and avoid default.
- LGFVs are firms that borrow on behalf of provinces and cities to finance mainly infrastructure projects.
- have 4.65 trillion yuan ($651 billion) worth of bonds due over the next 12 months
- the highest amount on record
- roughly 13% more than what came due last year
- “Containing the credit contagion and the systemic financial risk from the LGFV sector remain top priorities for the central government this year,” said Zerlina Zeng, senior credit analyst at Creditsights Inc.
Bloomberg is gated but here is the link for more if you can access it.
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Meanwhile, Chinese government bond yields fell to the lowest in more than three years today. Stockmarkets are being slammed lower also.