LGFVs: to default, or not default? Ask Beijing

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

Xi's deleveraging zeal hits China local govt funding plans

At least a dozen local government financing vehicles, or LGFVs, have hit the brakes on their offshore debt sales as investors fret about the rising default risks.

May 09, 2018

INFOGRAPHIC: China’s local governments start to feel pinch

Rising onshore borrowing costs leads to a rising risk of bond defaults by local-government financing vehicles

May 06, 2018

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.

September 27, 2017

Investors must tread carefully with LGFV bonds

Investors are rushing back to Chinese LGFV offshore bonds, but credit risk means that picking the wrong ones could be costly.

May 29, 2019

Moody’s' Chung dissects China LGFVs at FinanceAsia summit

Central China Real Estate’s Mai expresses cautious optimism over property sector while New World Development’s Lam elaborates on Greater Bay Area challenges.

October 20, 2020