“Analysis-China can no longer ‘extend and pretend’ on municipal debt”
August 7, 2023
“China’s promised “basket of measures” to defuse local government debt risks is likely to include special bond issuance, debt swaps, loan rollovers, and something Beijing really loathes: dipping into the central budget.
Local governments are fundamental to China’s economy, with Beijing tasking provincial and city officials with meeting ambitious growth targets. But after years of over-investment in infrastructure, plummeting returns from land sales and soaring COVID costs, economists say debt-laden municipalities now represent a major risk to China’s economy.
Chinese leaders last month pledged, without detailing, to help ease their debts, signalling worries over a potential chain of municipal debt defaults destabilising the financial sector…”
https://finance.yahoo.com/news/analysis-china-no-longer-extend-230319657.html
The financial situation is looking extremely bad for China right now. They’re trying to cover up / lie about the condition of the country but the news is slowly coming out. Honestly its starting to look so bad I don’t know if the CCP will be able to stay in power.