Credit quality polarised among China’s local governments

Not all of China's local governments are drowning under the weight of their debts, according to a report by Standard & Poor's.

Credit quality polarised among China’s local governments
Qingdao, in Shandong province, where the local economy is thriving

It is often assumed that China’s local and regional governments are all mired in unsustainable debt, but it turns out that not all provincial governments are created equal.

Rating agency Standard Poor’s has spent the past few years assessing the creditworthiness of several local governments in China and found wide variation. Some of them do indeed have big debts and contingent liabilities, but many others boast solid budgetary performance and ample liquidity, SP said...

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