China spawns new debt market to ease burden on local governments - BBG

Dhwani Mehta FXStreet

Bloomberg out with yet another headlines on the Chinese economy, this time citing that China’s government is promoting a new tool to raise funds for infrastructure projects as debt levels at municipalities mount.

Key Points:

China is seeking to lure more private money into infrastructure projects, while limiting its responsibility for the debt needed to fund them

Debt levels at municipalities have risen, this is intended to ease the burden on them

Intended to bring more private money into infrastructure projects, and therefore less government debt

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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