Recent field studies conducted by ANBOUND Consulting suggests that following the double whammy of slowdown in industrial development as well as the weak property market, the actual fiscal situation at the local governments has continued to worsen.

This coupled with the increased debt burden, although the relevant departments have introduced measures on debt-swapping, the rigid pressure arising from the local expenditures have accelerated the risk of fiscal crisis in certain local governments.

The possibility of simultaneous occurrence of local fiscal risk, financial risk and social risk cannot be discounted.