Source: Wall Street Journal
Author: Cao Li, Rebecca FENG
A local government in China has reached back to the statement of serious debt issues. Previously, an anonymous experts were widely circulated on social media in social media at the call meeting with investors.
Although China has been fighting expert network consultation activities, it has conducted assault inspections and police investigations in the past two months, but this conference call is still held.
Officials from Kunming, Yunnan Province, China refuted at least one of the people who are obviously apparently experts. The latter claims that the city's local government financing platform (LGFV) has difficulty in repaying debts and payment of staff.The Kunming State -owned Assets Supervision and Administration Commission said on Wednesday that the information was not true and had taken legal means.
This conference call was held by the Chinese brokerage Haitong Securities Organization.A speaker at the meeting was an employee of the Kunming Branch of China Minsheng Bank.Minsheng Bank issued a statement last Wednesday that the employee participated in the conference in the name of his personal name, and made unrealistic remarks at the meeting, saying that Minsheng Bank would seriously deal with the employee.Haitong Securities stated in the statement that the remarks of the above -mentioned external participants only represent their individuals and do not represent the views and positions of Haitong Securities.
Kunming officials mentioned two minutes in response.One of the minutes of the Wall Street Journal showed that the people who made the speech controlled the city's LGFV decision -making internal feelings and also knew the source of funds for recent repayment of bonds.
In China, executives, government officials and others can get compensation by providing experts from investors, banks and companies, and earn up to $ 10,000 per hour.However, the Chinese government has recently taken measures to crack down on such expert consultation activities. At the same time, it has also launched a wider -covered action to strengthen the supervision of intelligence collection, especially such activities of foreign companies.
Earlier this month, the office of Capvision, a Chinese company specializing in expert consultation services for customers, was assaulted inspection. This public operation showed the tough position of the Chinese government on this issue.The news team of a state -owned television reported on this assault search operation by the Chinese government.A 15 -minute Chinese popular TV show was broadcast on related images.
In March of this year, the relevant Chinese departments checked the office of Mintz Group, a US due diligence company, and detained the company's five Chinese employees.In April, the relevant Chinese departments questioned the employees of the Shanghai Office of the Shanghai Office of another American company.
Kunming is a hot spot in tourist tourism. Last year, the city's economy was severely hit by China's strict dynamic dynamic clearance policy and long -term slowdown in the real estate industry.According to public data, the land transfer revenue in Kunming in 2022 decreased by about 87%compared with 2019.The city's tourism income declined in 2020 and 2021.
The minutes cited by Kunming officials said that a city of LGFV in the city has recently encountered difficulties in paying a debt equivalent to $ 28 million, and finally borrowed from the local government and other financing platforms to pay before the last period.The minutes also said that several LGFV employees have not received their salary at least three months.
The Minister said that officials of Kunming Municipal Government and the leaders of several LGFVs went to Shanghai to seek help.China began to implement a plan in 1996 to pair rich provinces with poverty -stricken provinces that may need assistance. Yunnan is the target of Shanghai's counterpart assistance.
China's local governments have accumulated a lot of debt, and investors and economists are increasingly worried that another debt crisis in China is approaching.
In April, a think tank of the Guizhou Provincial Government stated that it was impossible to resolve the province's debt alone by its own ability and needed the aid of the central government.Earlier this month, the Guiyang City Finance Bureau of Guizhou Province said that Guiyang City has tried everything to create conditions to resolve debts, and technical means have basically exhausted debt.Both articles were later deleted.
