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Wednesday, April 29, 2015
ANBOUND: Lessons from Chongqing's Gambling on Massive Demolition
ANBOUND

Considering Chongqing's unrestrained gambling on massive housing demolition has raised great attentions of all parties, ANBOUND concludes three implications: firstly, the low-cost and long-term finance provided by China Development Bank builds a solid foundation; secondly, Chongqing fully takes its advantage of economic position and development potential in Southwest China; thirdly, the debt lent by CDB is excluded from the government debt statistics. For the rest regions of China, fully imitating Chongqing’s model is impossible, but its vision on effectively utilizing national policy-oriented financial resource teaches a good lesson. There seems, however, Chongqing still needs to be cautious over the risk of debt expanding even the financial resource has already been in their pocket.

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