China LGFVs: fears mount of bond defaults

Concern the country’s local government financing vehicles could default on debt are rising, but foreign investors look set to keep buying their bonds.

Some of China’s local government financing vehicles (LGFVs) are increasingly likely to default on their public debts, but foreign investors can breathe a sigh of relief—any debt collapses will most likely impact lower-tier bonds that are mostly held by local buyers. 

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