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With the severe local debt situation, people familiar with the matter revealed that the Chinese State Council has taken measures to restrict the ability of 12 debt in 12 debt conditions and regulate new projects that can be launched in these places.

Reuters on Wednesday (October 25) quoted three insiders that the 12 provinces and cities covering the vast regions of China, including Liaoning, Jilin, Guizhou, Yunnan, and three autonomous regions, seven provinces and regions., Plus two municipalities in Tianjin and Chongqing.These 12 places will only bear specific projects, such as projects approved by the central government, but other new railway stations and power plant projects are not allowed.

People familiar with the matter said that the date of the State Council in late September has been issued to local governments and state -owned banks this month.The document clearly stipulates that the growth rate of the debt growth of the local government financing platform (LGFV) cannot exceed the average growth rate of loans in the province's enterprise.

Documents also stipulate that local governments will only provide funds for major projects and projects approved by the State Council.Two sources said that these projects include the re -development of urban communities and the construction of affordable housing.

Reuters said that the news of the Chinese State Council's control of local governments' debt has not been reported.These measures reflect the Chinese government's efforts to resolve the risk of local government debt, and inject funds into large infrastructure projects at the same time to stimulate China's sluggish economy.

The Chinese government issued a Tuesday (October 24) of 1 trillion yuan (RMB, the same below, the same, S $ 189.4 billion) Treasury bonds, arranged to the local government by transferring payment, and concentrated their forces to support post -disaster recovery and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction and reconstruction of the disaster.Make up for the shortcomings of disaster prevention and disaster relief, and improve China's ability to resist natural disasters.

Report also pointed out that the above measures actually mean that the debt of the central government can be reduced by increasing the debt of the central government.Although the central government's debt accounted for only 21%of GDP, last year's local debt reached 9.2 trillion yuan, accounting for 76%of the national economic output last year.The huge debt highlighted the financial pressure of the local government and exacerbated the outside world's concerns about China's systemic financial crisis.

Reuters reported last week that China has requested that state -owned banks will make the existing debt exhibition period as a long -term loan at a lower interest rate.