Local government debt

Local government debt

What you need to know about China’s record-high debt
China’s overall debt level is set to rise this year to a record as analysts expect China to be borrowing more money in the coming months to rescue its coronavirus-hit economy. But the economic fallout from the pandemic has raised concerns over the state firms and local governments’ ability to pay back those loans to investors, potentially triggering a financial tumble at home which could destabilize other markets around the world.  The South China Morning Post examines China’s debt, who owns it and why it matters. What is the nature of China’s debt?  Broadly speaking, China’s debt can be divided into domestic debt and foreign debt. China’s domestic debt, denominated in yuan, consists of thr