Debt on a downward spiral: China’s LGFVs
Analysts fear that defaults in the shadow banking space could push into public bond markets. Will Beijing be able to implement reform?
April 25, 2023
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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