(Qingdao Road Power) set up a company in Qingdao, Shandong, China to settle for local government financing platform (LGFV) for tight funds to reduce debt risk.
Reuters reported on Thursday (July 13) that sources said that the China National Development Bank's capital contribution and the registered capital is 10 billion yuan (below, about 1.85 billion yuan) Dongding Industrial Group.Provide liquidity support for Qingdao local government financing platform.
It is reported that the first exposure of such local government policy platforms means that China is increasing efforts to prevent local debt from leading to economic derailment.China's local debt is expected to exceed 64 trillion yuan.
Data from Southwest Securities show that since 2019, the crown disease epidemic and sluggish real estate market have a blow to fiscal revenue, which has led the Shandong local government financing platform to maintain economic growth through borrowing. As a result, its debt has increased by two -thirds.It reached 4.3 trillion yuan.
It is reported that in the past month, many municipal governments such as Jinan, Weifang and Gaomi have signed strategic cooperation agreements with state -owned banks such as Agricultural Bank of China and China Construction Bank.
At the end of April this year at the Politburo meeting at the end of April this year, the local government urged local governments to "strengthen debt management and strictly curb hidden debt growth", and many provinces such as Liaoning and Hunan have also recently launched relevant measures to reduce local governments to reduce local governmentsRisk of debt.
Sources said that in order to prevent public market defaults, Qingdao also began to strengthen debt supervision.
